Rating Release

 Agusto & Co. assigns “A-” rating and a stable outlook to Global Accelerex Limited

This rating expires 30 June 2021.

Agusto & Co. has assigned an ‘A-‘ rating to Global Accelerex Limited (‘Global Accelerex’, ‘GAL’ or ‘the Company’) one of the financial technology companies in Nigeria. The assigned rating reflects Global Accelerex’s good financial condition evidenced by good profitability, good cash flow, satisfactory working capital, and low leverage. Our rating takes into cognisance the Company’s qualified and experienced management team, market leadership position in the payment terminals space in the financial technology industry in Nigeria. Nonetheless, the rating is tempered by supplier risk, given the concentration in sourcing hardware terminals from China which was evidenced by the disruption in supply chain activities, owing to the Coronavirus pandemic (COVID-19) subsequent to the year end. Our rating is also constrained by subpar corporate governance structure and the weaknesses in the Nigerian economy which has led to distortions in the foreign exchange market as well as an adverse impact on the performances of businesses.

Global Accelerex is an electronic payment solutions provider licensed by the Central Bank of Nigeria (CBN) as a Payment Terminal Service Provider (PTSP) and Payment Solution Service Provider (PSSP). The Company specialises in the marketing and distribution of hardware terminal point of sale (POS) machines and software payment solutions to financial institutions and retail merchants. Global Accelerex has over 98,000 merchants utilising its POS terminals across the country, with banks and other financial institutions accounting for the 90% of its customer base.

The opinions expressed in this rating release do not represent investment or other advice and should therefore not be construed as such. Visit www.agusto.com for further information.