Rating Release
Agusto & Co. hereby affirms the “A-” rating assigned to Sundry Foods Funding SPV PLC’s ₦2.5 bil+B47lion 5-Year 13.5% Fixed Rate Bond Due 2026
The rating expires on 15 December 2024.
Agusto & Co. hereby affirms the “A-” rating assigned to Sundry Foods Funding SPV PLC’s (“Sundry Foods SPV” or “the Issuer”) ₦2.5 billion 5-Year 13.5% Fixed Rate Bond Due 2026 (“Series 1 bond”, “the Bond” or “the Issue”) under the ₦20 Billion Bond Issuance Programme. The Issue rating is hinged on the standalone rating of Sundry Foods Limited (“the Sponsor” or “Co-Obligor”), rated “A-“ by Agusto & Co. and expiring on 30 June 2024 given that the Series 1 Bond ranks equally with other senior debts of the Sponsor and the repayment of the Bonds are primarily being met from its operating cash flow. Sundry Foods Limited’s credit quality is underpinned by its good and sustainable profitability and cash flow, its low leverage metrics and its market position as a major operator in the Nigerian Quick Service Restaurants (QSR) Industry.
Sundry Foods Limited is one of the leading players in the Food Services Industry in Nigeria. The Company started as a maker of bakery products in 2004 and currently owns four food brands – Kilimanjaro restaurants, Pizza Jungle, Kiligrill and Nibbles Creamery in addition to its bakery brand – Nibble Bakery. SFL also provides canteen and catering services to corporate and private entities. The Company had 185 outlets (as at 31 October 2023), consisting of restaurants and bakeries and 16 staff canteens.
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.
