Agusto & Co. assigns a Bb rating and attaches a neutral outlook to Kawai Technologies Limited

Agusto & Co. assigns a Bb rating and attaches a neutral outlook to Kawai Technologies Limited

Rating Release

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.

This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.

Finance & Leasing

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C&I Leasing Plc ₦10 billion 7-year Series II Bond Bbb+ Jun 03 , 2022 Stable Nigeria
C&I Leasing Plc ₦7 billion 5-year Series I Bond A- Jun 11 , 2022 Stable Nigeria
C&I Leasing Plc Bbb- Jun 30 , 2022 Stable Nigeria
Credit Direct Limited Bbb Jun 30 , 2022 Stable Nigeria
Citihomes Finance Company Limited SR3 Jul 05 , 2022 N/A Nigeria

Corporates

COMPANY RATING EXPIRY OUTLOOK COUNTRY
Axxela Limited A- Jun 30 , 2022 Stable Nigeria
Kawai Technologies Limited Bb Jun 30 , 2022 Neutral Nigeria

Corporate Bonds

COMPANY RATING EXPIRY OUTLOOK COUNTRY
Axxela Funding 1 Plc’s Series 1 Bond A- May 31 , 2022 Stable Nigeria
Viathan Funding Plc.’s ₦10 billion 10-year Series 1 Senior Guaranteed Fixed Rate Bond Due 2027 Aaa Dec 31 , 2027 Stable Nigeria
NSP-SPV PowerCorp Plc’s ₦10 Billion 15-year Series 1 Aaa Dec 31 , 2033 Stable Nigeria