Rating Release
Agusto & Co. hereby upgrades the rating assigned to Odu’a Investment Company Limited to “Aa-” with a stable outlook
The rating expires on 30 June 2026.
Agusto & Co. hereby upgrades the rating assigned to Odu’a Investment Company Limited (“Odu’a Investment,” “OICL,” “the Holding Company” or “the Company”) to “Aa-“. The assigned rating reflects the improvement in OICL’s operating income and cash flows, driven by higher dividend receipts from investee companies, increased investment income from non-equity assets and stronger rental earnings. The rating also recognises the positive impact of the Company’s ongoing strategic repositioning efforts, including divestments from non-performing assets and reinvestment into high-yielding investment portfolios managed by reputable asset managers. The rating is further upheld by OICL’s growing investable capital and pool of liquid assets, diversified earnings profile, conservative financing structure, low leverage and portfolio of subsidiaries and associates with established positions across key sectors of the Nigerian economy. However, the rating is constrained by the Company’s low profitability, which reflects underperforming legacy assets and the early-stage nature of its recent investments. We also note that the earnings performance of portfolio entities remains vulnerable to macroeconomic pressures, including elevated inflation, high energy costs and volatile input prices, which may dampen dividend flows to OICL.
Odu’a Investment Company Limited is the non-operating holding company of Odu’a Group. OICL is owned and controlled by six states in Nigeria’s South-West region (Ekiti, Lagos, Ogun, Ondo, Osun and Oyo). The Company has a diversified portfolio of subsidiaries and associates operating in various sectors in Nigeria, including real estate, equipment leasing, agriculture, printing and publishing, manufacturing, hospitality, healthcare, financial services and oil and gas.
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.
