Rating Release
Agusto & Co. hereby affirms the “Bbb-” rating assigned to Lionseal Industries Limited
The rating expires on 30 June 2024.
Agusto & Co. hereby affirms the “Bbb-” rating assigned to Lionseal Industries Limited (“Lionseal Industries”, “Lionseal” or “the Company”). The assigned rating reflects our assessment of the Company’s good profitability, adequate cash flows and moderate leverage profile. The rating is supported by Lionseal’s diversified portfolio of crop protection products, a stable and experienced management team, and ongoing expansion and diversification initiatives that are expected to enhance its earnings and resilience against supply chain and foreign exchange risks associated with imported agrochemical inputs. However, the rating is constrained by the Company’s inadequate working capital, highly concentrated ownership structure and corporate governance framework that requires strengthening in line with best practices.
Incorporated as a private limited liability company on 4 September 2007, Lionseal Industries Limited is a prominent player in the Agricultural Inputs Industry in Nigeria. The Company specialises in the importation, sale and distribution of various crop protection products, including herbicides, pesticides, insecticides, fumigants and sprayers. In 2022, the Company expanded its business activities to include the processing and export of agricultural commodities (mainly sesame).
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.
