Rating Release
Agusto & Co. hereby assigns an “A” rating to GZ Industries Limited
The rating expires on 30 June 2024.
Agusto & Co. hereby assigns an “A” rating to GZ Industries Limited (“GZI” or “the Company”). The rating reflects our opinion on the Company’s strong capacity to meet its maturing obligations evidenced by its good and sustainable profitability and cash flow positions despite the challenging operating environment. The rating also considers GZI’s leading position in the aluminium beverage cans industry in Nigeria as well as the prospects of increased export sales to minimize the vulnerability of its operations to future currency devaluations. However, the rating is constrained by concerns over the Company’s elevated debt profile as well as its persistent working capital challenges exacerbated by the steady rise in the invoice prices of imported raw materials and spares amid the weakening of the local currency.
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.
