Rating Release

Agusto & Co hereby assigns a “Bbb-” rating to Legend Internet PLC, (“Legend,” “Legend Internet” or “the Company) with a stable outlook 

The rating expires on 31 January 2026.

Agusto & Co hereby assigns a “Bbb-” rating to Legend Internet PLC, (“Legend,” “Legend Internet” or “the Company). The rating reflects the Company’s satisfactory cash flow position, underpinned by the predominantly cash-based nature of its operations and its low leverage. The rating also considers the Company’s significant infrastructure investment in the Federal Capital Territory (FCT), which is expected to facilitate low-cost customer connections following the completion of the most disruptive phase of the city-wide construction works that had previously constrained customer onboarding. It also factors in the 50% tariff hike approved by the Nigerian Communications Commission (NCC), which is expected to improve overall earnings and cash flow. The rating further highlights the prospects of the Company’s ongoing expansion into the Lagos market through a merger and acquisition. Nonetheless, the rating is constrained by the Company’s muted revenue growth, as well as its inadequate working capital.

Legend Internet PLC was incorporated on 17 August 2021 as a broadband internet service provider, operating primarily through a Fibre-to-the-Home (FTTH) model.  The Company also maintains a modest fintech presence via its proprietary wallet, enabling customer–merchant transactions within the Legend ecosystem. Beyond broadband, Legend offers complementary services to enhance retention and raise average revenue per user, including home automation, security solutions, and LegendMail – Nigeria’s first commercial email platform. The Company’s principal operations are based in the FCT, where it has deployed FTTH infrastructure across 250,000 homes, of which 22,000 are connected and 10,000 are currently active. The relatively low connection ratio reflects management’s decision to prioritize infrastructure rollout over customer acquisition, given recurring service disruptions from city-wide construction activities, which has now subsided.