Rating Release
Agusto & Co. hereby affirms the “A-” rating assigned to Julius Berger Nigeria Plc
The rating expires on 30 June 2024.
Agusto & Co. hereby affirms the “A-” rating assigned to Julius Berger Nigeria Plc (“Julius Berger”, “JBN”, or “the Company”). The assigned rating reflects Julius Berger’s good and sustainable cash flows bolstered by significant upfront payments from clients, satisfactory profitability and low leverage. In addition, the rating is strengthened by JBN’s dominant Industry position and expanding contract portfolio, including national priority projects backed by the Presidential Infrastructure Development Fund (PIDF). We have also considered the prospects of JBN’s recent diversification into agro-progressing on its future foreign exchange earnings. However, the rating is tempered by Julius Berger’s concentrated receivables from government and related agencies and low equity cushion. The downside risks to JBN’s earnings posed by post-election uncertainties, rising energy costs and escalating input prices were also factored into the rating.
Julius Berger Nigeria Plc is Nigeria’s foremost construction company with core competency in executing complex projects requiring cutting-edge equipment and technological expertise. The Company provides integrated building, construction and facility management services to public and private sector clients in Nigeria.
The opinions expressed in this rating release do not represent any investment or other advice and should therefore not be construed as such. Visit www.agusto.com for further information.
