Rating Release

Agusto & Co. hereby affirms the “A-” rating assigned to FMN Financing 1 PLC’s (“the Issuer”) ₦46 billion 5-Year 22% Fixed Rate Senior Unsecured Bond Due 2026 (“Series 2 Bond”, “the Bond” or “the Issue”) under the ₦200 billion Bond Issuance Programme.

The rating expires on 30 May 2026. 

Agusto & Co. hereby affirms the “A-” rating assigned to FMN Financing 1 PLC’s (“the Issuer”) ₦46 billion 5-Year 22% Fixed Rate Senior Unsecured Bond Due 2026 (“Series 2 Bond”, “the Bond” or “the Issue”) under the ₦200 billion Bond Issuance Programme. The rating reflects the credit strengths of Golden Penny Foods Limited (“GPFL”, “the Group” or “the Sponsor”), rated “A-” by Agusto & Co. and expiring on 30 September 2026, since the Bond obligations are fully backed by the Sponsor’s cash flow. Golden Penny Foods Limited’s rating reflects its strong capacity to meet obligations, supported by its good profitability metrics, healthy cash flow and adequate liquidity position underpinned by favourable trade terms with customers and suppliers. GPFL’s rating also considers its key position in the Nigerian Flour Milling Industry and the anticipated revenue and cost synergies stemming from the recently completed corporate restructuring. Notwithstanding, the rating is constrained by GPFL’s high leverage metrics amid debt-funded inventory investments, as well as rising intercompany receivables that continue to strain its cash flow and liquidity positions. The susceptibility of the Group’s future earnings and cash flow to commodity price risks also constrains the rating.