Rating Release
Agusto & Co. assigns a ‘Bbb+’ rating to Cutix PLC, with a stable outlook
The rating expires on 31 October 2025.
Agusto & Co. hereby upgrades the rating assigned to Cutix Plc (“Cutix” or “the Company”) to “Bbb+” to reflect the notable improvement in the Company’s earnings and cash flows supported in part by the sustained demand for its products. This is in addition to the relative stability in the Company’s profit margins on the back of its efficient procurement strategies and strong ability to pass on cost increases to consumers. The rating also considers Cutix’s expanding distribution channels, which should strengthen its niche market position in the southern region of the country, and the prospects of local recycling of copper scraps (backward integration) that will help to build additional resilience against price and supply risks associated with imported raw materials. The rating is however constrained by sustained inventory investments, which have continued to weigh on the Company’s working capital management.
Cutix Plc is an indigenous cable maker with an annual install capacity of 3,000 metric tons (MT) of copper and aluminum conductors. The Company, through its wholly-owned subsidiary, Adswitch Limited, engages in the production of other electrical-related products such as distribution boards, switch panels, changeover switches, fuse bases and busbar chambers.
