Rating Release
Agusto & Co. assigns a “Bbb-“ rating to Stratos Trading Limited’s ₦5 Billion Three-Year Senior Secured Fixed-Rate Series 1 Note Due 2029, with a stable outlook.
The rating expires on 31 May 2027.
Agusto & Co. hereby assigns an indicative “Bbb-“ rating to Stratos Trading Limited’s (“Stratos”, “STL”, “the Issuer” or “the Company”) ₦5 Billion Three-Year Senior Secured Fixed-Rate Series 1 Note Due 2029 (“the Note, “the Bond”, “the Series 1 Note” or “the Issue”) Under the ₦10 Billion Medium-Term Note Issuance Programme. The assigned rating reflects the Issuer’s healthy earnings profile and cash flow generation, supported by its dollar-denominated revenue base, which provides a degree of resilience against foreign exchange volatility. The rating also takes into account the Company’s ongoing development of a dedicated bunkering terminal within the Lagos Free Zone. This project is expected to strategically position the Stratos Trading Limited to benefit from rising vessel traffic linked to increasing maritime activities at the Lekki Deep Sea Port. In addition, the anticipated growth in export volumes and improved operational efficiency from its growing vessel fleet are expected to support earnings growth over the medium term. The rating is, however, constrained by project execution risks and uncertainties in global trade flows amid escalating geopolitical tensions.
Stratos Trading Limited is a private limited liability company incorporated in 2018, engaged primarily in the trading and supply of 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 operates in accordance with standards set by the International Organization for Standardization (ISO), reflecting adherence to recognised industry and quality 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”).