DataPro, the technology-driven credit rating agency (CRA), in its latest report released at the weekend, assigned A-Z Petroleum Products Limited long-term rating “BBB” with a Stable outlook for the year 2022/2023.
The rating, according to Kehinde Rasheed, DataPro’s Client Services Manager, “indicates slight risk and shows fair financial strength, operating performance and business profile when compared to the standard established by DataPro.
“This company, in our opinion, has the ability to meet its ongoing obligations, but its financial strength is vulnerable to adverse changes in economic conditions,” DataPro said, assuring that its committee approved the rating after assessing A-Z’s financial performance, capitalisation, asset utility, corporate governance, risk factors, as well as operational and regulatory environment.
A-Z, it added, has continuously increased its revenue over the last five years, and that the 2020 financial year revenue rose by 8%, while Gross Profit Margin improved from 13% (year ‘19) to 15% (year 2020).
The Rating also factored the significant market share of A-Z in three of the six geopolitical zones in Nigeria, in addition to such other considerations as the company’s experienced management team and its very good financial performance.
A-Z Petroleum Products Limited had a Short-Term Rating of “A2,” which indicates a fair credit quality and adequate capacity for timely payment of financial commitments.
DataPro noted that the rating carries a maximum shelf life of 12 calendar months, in line with international best practice.