Rating Release

Agusto & Co. hereby assigns an indicative “A-” rating to UAC of Nigeria PLC’s (“UACN”, “the Issuer”, “the Holding Company” or “the Company”) up to ₦75 billion Seven-Year Senior Unsecured Fixed Rate Bond Due 2032 (“Series 1 Bond”, “the Bond” or “the Issue”) under its ₦150 billion Multi Instrument Issuance Programme

The rating expires on 30 November 2026. 

Agusto & Co. hereby assigns an indicative “A-” rating to UAC of Nigeria PLC’s (“UACN”, “the Issuer”, “the Holding Company” or “the Company”) up to ₦75 billion Seven-Year Senior Unsecured Fixed Rate Bond Due 2032 (“Series 1 Bond”, “the Bond”” or “”the Issue”) under its ₦150 billion Multi Instrument Issuance Programme. The assigned rating mirrors the standalone rating of UAC of Nigeria PLC. The rating equalisation is underpinned by the robust earnings trajectory of Chivita|Hollandia (CHI Limited), the newly acquired operating company (OpCo), as anticipated upstreaming of cash flows via coupon and principal repayments is expected to reinforce the Holding Company’s debt servicing capacity. The rating also takes into account the Bond’s four-year principal moratorium and the Issuer’s demonstrated ability to refinance maturing debt obligations, which should help ease near-term liquidity pressures. However, the assigned rating is moderated by the increasing financial risk in UACN’s capital structure following the leveraged buyout of CHI Limited and the resultant rise in contingent liabilities. The rating is further constrained by the Issuer’s subdued near-term profitability on account of its rising interest burden, as well as the Holding Company’s weak operating cash flows driven by the continued build-up in related-party receivables under the intercompany funding model.