Rating Release

Agusto & Co hereby upgrades the rating assigned to BB Landmark Realty Limited to “Bbb”

The rating expires on 30 June 2023.

Agusto & Co hereby upgrades the rating assigned to BB Landmark Realty Limited (“BBL” or “the Company”) to “Bbb”. The rating reflects notable improvement in the Company’s profitability and cash flow positions amid the quick rebound in footfall and average spend per customer across its ecosystem following the easing of the coronavirus-induced restrictions. The rating further considers BBL’s scalable business model and well-diversified income sources that have continued to support growth in both revenue and profit margin. However, the rating is constrained by the high debt burden arising from outstanding foreign currency exposure to the Mauritius-based ultimate parent company (Worldwide Landmark Holding Company Limited), as well as the lingering mismatch in its funding structure. This is in addition to concerns over the Company’s future earnings as the steady rise in the prices of food and energy costs continues to dampen consumer discretionary spending. Furthermore, we consider the country’s uncertain political landscape as a downside risk to BBL’s future growth and expansion plans.

Landmark Africa (“Landmark Group”) is a leading real estate and property development company with a diversified portfolio of over 150,000 square meters (sqm) of mixed-use office, residential, leisure and recreational developments in Nigeria. The Group is active across the entire value chain of real estate development and has over 80 businesses, which span several sectors of the Nigerian economy, operating within its ecosystem. BB Landmark Realty Limited is a property holding company that manages the Landmark Group’s investments in the country.