Agusto & Co. assigns a “A-” rating to Total E&P Nigeria Multipurpose Staff Co-operative Society Limited.
The rating expires on 30 June 2021.
Agusto & Co. hereby assigns an “A-” rating to Total E&P Nigeria Multipurpose Staff Co-operative Society Limited (“Total Coop” or “the Cooperative”). The rating is hinged on the Cooperative’s strong asset growth with low loan default rates, good profitability, sufficient capital and moderate leverage. However, the rating is constrained by a poor liquidity profile due to a fast-growing asset portfolio, subpar market and operational risk monitoring systems and the limited regulatory supervision of cooperative societies in Nigeria. We have also considered the impact of the COVID-19 pandemic which has elevated economic risk and adversely impacted the fortunes of the real estate and financial services industries.
Total Coop is owned by full-time employees of Total Exploration & Production Nigeria Limited (TEPNG), one of the major international oil & gas companies in Nigeria. The Cooperative has a long track record of operations, having been registered on 24 March 1988 under the Lagos State’s Bye Laws. The Cooperative is regulated by, and submits annual audited financial reports, to the Lagos State Ministry of Commerce, Industry and Cooperatives. Total Coop is also a technical member of the International Cooperative Alliance (ICA) and African Confederation of Cooperative Savings & Credit Associations (ACCOSCA).
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