Rating Release
Agusto & Co. affirms the “A” rating assigned to Coleman Technical Industries Limited, with a stable outlook.
The rating expires on 30 June 2027.
Agusto & Co. hereby affirms the “A” (long-term) and “A1” (short-term) ratings assigned to Coleman Technical Industries Limited (“Coleman Wires & Cables”, “Coleman”, “CTIL” or “the Company. The ratings affirmation reflects the Company’s resilient earnings performance despite the loss of sales volumes associated with the discontinued oil and gas supply contract, which had previously been a key contributor to revenue and margin growth. The ratings also take into account the Company’s good debt-servicing capacity, as demonstrated by an adequate EBITDA interest coverage ratio of 2.8x in FYE 2025. In addition, the rating affirmation is supported by the Company’s well-established position in the Nigerian wire and cable industry and the sustained demand for its products across the construction, power, oil and gas, and telecommunications sectors. The ratings further consider the anticipated enhancement in raw material availability following the removal of import duties on copper cathodes, copper alloys, and copper scrap, a development expected to drive higher production volumes and improve utilisation of the Company’s installed capacity. The rating is, however, tempered by the Company’s rising debt profile, as well as growing working capital requirements driven by ongoing capital expansion programmes and sustained inventory build-ups. This is in addition to the exposure of its future earnings to volatility in copper and aluminium prices.
Coleman Technical Industries Limited (CTIL), incorporated on 1 July 1975 as a private limited liability company, is a leading electric wire and cable manufacturer and distributor in Nigeria. The Company manufactures over 30 product lines, including power, control, aerial, submersible, communication, and other specialised cables, which are distributed through an extensive network across Nigeria and selected West African markets. CTIL operates manufacturing facilities in Arepo and Sagamu, Ogun State, with an installed annual production capacity of 130,000 metric tons for copper conductors and 48,000 metric tons for aluminium conductors.