Agusto & Co. assigns a Bb rating and attaches a neutral outlook to Kawai Technologies Limited.
This rating expires 30 June 2022
The assigned rating reflects our opinion on the Company’s low leverage and good profitability on the back of new procurement contracts executed in 2020. However, the rating is tempered by the uncertainty regarding Kawai’s ability to secure future procurement contracts coupled with the high concentration in its client base as possible threats to current revenue and profitability levels. The rating is further constrained by Kawai Technologies’ inadequate working capital, cash flow that requires improvement as well as its weak corporate governance structure and concentrated ownership profile, which poses a potential key person dependency risk on the overall operations of the Company.
Kawai Technologies Limited is a supply chain and logistics company in Nigeria with a specialty in trading, procurement, logistics and project management. Kawai operates an online Order Tracking and Enterprise Management System, which enables the Company and clients to monitor orders and cargo movements on a real-time basis. The Company leverages the network of its owners to secure most of its supply contracts and procurement assignments.
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.