Rating Release
Agusto & Co. hereby downgrades the rating assigned to Global Accelerex Limited
The rating expires on 30 June 2024.
Agusto & Co. hereby downgrades the rating assigned to Global Accelerex Limited (“Global Accelerex”, “GAL” or “the Company”) to “Bbb“ on account of i) declining profitability margins due to the inability to completely transfer increases in direct and operating costs arising from the depreciation of the local currency and higher inflationary pressures to customers, ii) failure to obtain a resolution from Parent Company (Accelerex Holding) to fully off-set longstanding intercompany receivables with Convertible Loan Notes over the last two years thus impacting operating cash flow adversely, and iii) rise in leverage metrics due to elevated direct and indirect borrowings without commensurate equity cushion. Notwithstanding, GAL remains one of the leading electronic payment solution providers in Nigeria in terms of volume and value of transactions processed and is currently expanding into the East African market to generate foreign exchange and diversify income streams across geography.
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.
