Rating Release
Agusto & Co. hereby assigns “A” (long-term) and “A1” (short-term) ratings to Falcon Corporation Limited, with a stable outlook
The rating expires on 30 June 2026.
Agusto & Co. hereby assigns an “A” (long-term) and “A1” (short-term) ratings to Falcon Corporation Limited (“Falcon”, “FCL” or “the Company”). The assigned ratings reflect the Company’s strong profitability, supported by its exclusive distribution rights within designated franchise areas and sustained gas demand driven by industrialisation, growing domestic power generation needs and energy transition pressures. The ratings are further upheld by FCL’s good and sustainable operating cash flows, underpinned by favourable terms of trade with its natural gas supplier (NNPC Gas Marketing Limited) and long-term gas supply contracts with industrial and commercial customers. The ratings are further bolstered by the Company’s long operating history, established technical and operational expertise in gas infrastructure development and distribution, diversified customer base across key industries, and expected earnings uplift from ongoing diversification into LPG storage and throughput services. However, the ratings are constrained by Falcon’s low equity cushion, as well as its persistent long-term funding needs and rising leverage profile stemming from its capital-intensive expansion programme.
Falcon Corporation Limited is an indigenous gas and energy company operating across the midstream and downstream segments of Nigeria’s gas value chain, with core activities spanning natural gas infrastructure development and distribution, LPG trading and storage, and gas-related technical and consultancy services. Incorporated in February 1994, the Company is the licensed Local Distribution Company for the Ikorodu Natural Gas Distribution Zone (INGDZ) under a long-term Build, Operate and Transfer (BOT) concession with NNPC Gas Marketing Limited (NGML), with exclusive rights extending to 2045. Falcon operates a 25 million standard cubic feet per day (MMSCF/D) gas distribution network within the INGDZ, serving over 21 industrial and commercial customers.