Rating Release
Agusto & Co. hereby assigns an “A” rating to Odu’a Investment Company Limited
The rating expires on 30 June 2024.
Agusto & Co. hereby assigns an “A” rating to Odu’a Investment Company Limited (“Odu’a Investment”, “OICL” or “the Company”). The assigned rating reflects the Company’s good operating cash flows supported by its diversified income streams and portfolio of subsidiaries and associates, adequate working capital upheld by its lean operating structure and low leverage on account of its strong equity funding buffer. The rating further considers OICL’s long track record of operations across different sectors of the Nigerian economy, as well as its qualified and experienced management team. The rating is however tempered by concerns regarding future dividend receipts from subsidiaries and associates amid worsening macroeconomic conditions, escalating cost pressures and weakening consumer non-discretionary spending. This is in addition to the vulnerability of portfolio companies to ongoing global supply chain disruptions caused by rising geopolitical tensions, which poses downside risks to its earnings and expansion initiatives. In assigning the rating, we have assessed the financial condition of OICL as a standalone entity. Agusto & Co. did not appraise the performance of Odu’a Group, which comprises Odu’a Investment and its nine subsidiaries and associates.
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.
