Rating Release
Agusto & Co. hereby assigns a “Bbb” rating to Robust International Commodities Limited (“Robust International”, “RICL” or “the Company”).
The rating expires on 30 June 2025
Agusto & Co. hereby assigns a “Bbb” rating to Robust International Commodities Limited (“Robust International”, “RICL” or “the Company”). The assigned rating underscores the Company’s good profitability performance driven by its dollar-denominated earnings, moderate leverage as well as adequate cash flow and liquidity positions. The rating also considers the potential of RICL’s rapidly expanding processing capabilities, its diversified revenue stream bolstered by the recent launch of transportation services through its subsidiary – Robust Logistics International Limited, and the financial support from the parent. However, the rating is constrained by persistent shortfalls in the Company’s working capital, concentrated ownership structure and the absence of a proper corporate governance framework.
RICL was incorporated on 28 June 2017 and commenced operations in 2019. The Company was initially focused on trading agricultural commodities, but has now transitioned into agro-processing. RICL operates a sesame processing facility in Kano State and a cashew processing unit in Ogun State with plans to commence soya bean processing in 2025. The Company exports products to key markets, including Europe, China, Japan, Korea, India, Turkey and Vietnam. In August 2024, Robust International launched a transportation subsidiary with a fleet of 120 trucks, 120 trailers, 15 forklifts and 5 tractors, to meet its logistics requirements and generate additional revenue through third-party services. The Company is a subsidiary of Robust International PTE. LTD., Singapore (the Parent), which operates in 13 countries.