Rating Release
Agusto & Co. hereby affirms the “Bbb+” rating assigned to Geregu Power Plc
The rating expires on 30 June 2024.
Agusto & Co. hereby affirms the “Bbb+” rating assigned to Geregu Power Plc (“Geregu Power”, “GPP” or “the Company”). The rating reflects GPP’s operational resilience evidenced by its healthy earnings despite disruptions to its gas supply chain during the period. The rating also considers the operational efficiency and improved energy generation capacity to be derived from the proposed major overhaul of the Company’s power plants. However, the rating is constrained by concerns over the Company’s rising interest burden, high dividend payout and the negative impact of the persistent late payment of energy invoices by the Nigeria Bulk Electricity Trading Plc (NBET) on its overall liquidity
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.
