Rating Release

Agusto & Co. hereby assigns a “Bbb” rating to Nisa Medical Group Limited

The rating expires on 30 June 2024.

Agusto & Co. hereby assigns a “Bbb” rating to Nisa Medical Group Limited (“Nisa Medical Group”, “NMG” or “the Company”). The assigned rating considers the Company’s satisfactory profitability, good cash flow position, adequate working capital and moderate leverage metrics. The rating is also supported by the Company’s broad range of medical service offerings, ongoing expansion initiatives, which we expect to positively impact its operating performance and cash flows in the medium term and a stable, qualified and experienced management team. Nonetheless, the rating is tempered by the Company’s concentrated ownership structure and a corporate governance framework that requires improvement in our opinion. The rating is also moderated by the weak macroeconomic indicators in the country inhibiting the Company’s ability to effect pricing adjustments resulting in sluggish revenue growth, the heightened emigration of medical personnel, rising energy costs on the back of soaring crude oil prices globally, waning consumer purchasing power and the relatively high bargaining power of Health Management Organisations (HMOs).

Nisa Medical Group Limited, a leading private healthcare provider in the Federal Capital Territory, Abuja commenced operations in 1996 as a gynaecology and fertility clinic. NMG completed the first government-authenticated In Vitro Fertilization (IVF) birth in Nigeria in 1998 and has over the years delivered over 5,000 babies using the IVF technique. Although NMG commenced operations as a fertility clinic, it has expanded its portfolio of service offerings to include – accident & emergency, cardiology, physiotherapy, laboratory services, nephrology and oncology among others. The Company primarily operates through five business units in the Federal Capital Territory, Abuja – Nisa Premier Hospitals Limited, Nisa Pharmaceuticals Limited, Nisa Reproductive Health Centre Limited in Kaduna, Cell Genomics Limited and the Institute of Medical Sciences Africa (IMSA).

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