Rating Release

Agusto & Co. hereby affirms the “Aa” rating assigned to Presco PLC’s ₦34.5 billion Seven-Year Senior Unsecured Fixed Rate Bond Due 2029 and revises the outlook to positive from stable 

The rating expires on 30 June 2027. 

Agusto & Co. hereby affirms the “Aa” rating assigned to Presco PLC’s (“Presco” or “the Issuer” or “the Group”) ₦34.5 billion Seven-Year Senior Unsecured Fixed Rate Bond Due 2029 (“Series 1 Bond” or “the Issue” or “the Bond”) and revises the outlook to positive from stable. The positive outlook reflects prospects for sustained earnings growth, further improvement in leverage and the expected operating synergies from the Issuer’s recent acquisitions of Ghana Oil Palm Development Company Limited (GOPDC) and Saro Oil Palm Limited (SOP). The affirmed rating reflects Presco’s good earnings, robust cash-generating capacity and significant deleveraging following the full repayment of its outstanding vendor financing obligations in January 2026. The rating also considers the Group’s strengthened credit profile and capacity to meet its debt obligations, evidenced by a healthy EBITDA coverage ratio of 5.5x in FYE 2025. In addition, Presco PLC’s strong market leadership within the Nigerian oil palm industry and the expansion of its operating scale and geographic footprint through the full acquisition of Ghana Oil Palm Development Company Limited (GOPDC) and Saro Oil Palm Limited (SOP) support the rating. Nevertheless, the rating is constrained by Presco’s exposure to commodity price risks, particularly fluctuations in global crude palm oil prices.

Presco PLC is an integrated agro-industrial company engaged in the cultivation, processing, refining and fractionation of oil palm products, with plantations and processing facilities in Edo, Delta and Rivers States. The Group produces and distributes a range of crude and refined palm oil products, including specialty fats.