Rating Release
Agusto & Co. hereby downgrades the rating assigned to Nigerian Breweries PLC to “A+”
The rating expires on 30 June 2024.
Agusto & Co. hereby downgrades the rating assigned to Nigerian Breweries PLC (“Nigerian Breweries”, “NBPLC” or “the Company”) to “A+” on account of the rapid deterioration in earnings and cash flows arising from the huge foreign exchange losses that have significantly impaired its shareholders’ funds. This is in addition to concerns over NBPLC’s rising debt profile and interest burden, as well as the continuous vulnerability of its operations to future currency devaluations given the significant exposure to foreign currency loans and payables. The rating also takes into cognizance the Company’s leadership position in the brewery industry in Nigeria as well as the strategic support from Heineken N.V. Group (“Heineken” or “the Group”), which has continued to sustain its overall funding and liquidity positions.
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.
