Rating Release

Agusto & Co. affirms the “Bbb-“ rating assigned to Stratos Trading Limited, with a stable outlook. 

The rating expires on 30 June 2027. 

Agusto & Co. hereby affirms the “Bbb-” (long-term) and “A3” (short-term) ratings of Stratos Trading Limited (“Stratos”, “STL” or “the Company”). The ratings reflect the Company’s good earnings and cash flow generation and predominantly dollar-denominated revenue streams, which have continued to support margin resilience. The ratings also consider prospects of the bunkering terminal in the Lagos Free Zone, which will strategically position the Company to benefit from increasing vessel traffic at the Lekki Deep Sea Port, thus strengthening operational flexibility and supporting future revenue growth. Nevertheless, the rating remains constrained by execution risks associated with the terminal project and by persistent working capital pressures arising from the inventory-intensive nature of its operations.

Stratos Trading Limited is a private limited liability company incorporated in 2018, operating in the marine bunkering segment of the downstream oil and gas industry, where it trades and supplies bunker fuel to ships and large vessels operating within Nigeria and the broader West African maritime corridor. Stratos operates under supply contracts, typically structured as renewable one-year agreements, with counterparties including Bunker One, Monjasa DMCC, Deme Group, Donna Spectre Limited, Union Maritime Limited and BFS Trading FZCO. Stratos is a member of the International Bunker Industry Association (IBIA) and complies with ISO 9001 (Quality Management Systems), ISO 14001 (Environmental Management Systems), and ISO 45001 (Occupational Health and Safety Management Systems) standards, reflecting its adherence to recognised industry, quality, environmental, and occupational health and safety benchmarks.The Company has a 25-year lease agreement for approximately 2.5 hectares of land in the Lagos Free Zone, spanning from 1 December 2024 to 30 November 2049, which is being developed into a bunker terminal under STL Fuels Storage LFZ Enterprise (“SFSL”).