Agusto & Co. hereby affirms the “A-“ rating assigned to Julius Berger Nigeria Plc with a stable outlook
The rating expires on 30-06-23
Agusto & Co. hereby affirms the “A-“ rating assigned to Julius Berger Nigeria Plc (“Julius Berger”, “JBN” or “the Company”). The rating reflects the Company’s good and sustainable cash flow upheld by the advance payment nature of the Construction Industry in Nigeria, good profitability metrics and low leverage position. This is in addition to Julius Berger’s stable, qualified and experienced management team and the Company’s leading position in the Construction industry in Nigeria. The rating is further upheld by JBN’s growing contract portfolio size elicited by the increased government infrastructural projects, backed by the liquidity provided by the Presidential Infrastructure Development Fund (PIDF). The rating is however constrained by the Company’s continued long-term working capital shortfall, concentrated revenue from public sector clients and high level of trade receivables from the government and its agencies. The adverse impact of the frail macroeconomic environment evidenced by the rising inflation, distortions in the foreign exchange market as well as supply chain constraints have also been considered in the rating.
Julius Berger Nigeria Plc is a leading player in the Construction industry in Nigeria with core competencies and capacity in providing integrated building and construction solutions covering the planning, designing, engineering, construction, operation and maintenance of buildings, infrastructure and industrial projects in Nigeria. The Company enjoys long standing relationships with public and private sector clients in Nigeria due to its effectiveness in executing complex building and infrastructural projects over the past 50 years.
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.