Rating Release
Agusto & Co. upgrades the rating assigned Coleman Technical Industries Limited to “A”, with a stable outlook
The rating expires on 30 June 2026.
Agusto & Co. hereby upgrades the rating assigned to Coleman Technical Industries Limited (“Coleman Wires & Cables”, “Coleman”, “CTIL” or “the Company”) to “A”. The rating upgrade reflects the improvement in CTIL’s earnings and cash flows, supported by sustained demand for its products across key sectors; construction, power, oil and gas and telecommunications, as well as foreign currency inflows from oil and gas contracts, which have provided a partial hedge against its foreign currency exposure. This is in addition to strong profit margins, supported by the positive impact of its procurement price hedging strategy and cost efficiency initiatives, including increased use of gas-powered generators. The rating also considers CTIL’s expanded cable production capacity, the prospects of local copper smelting, which, once operational, is expected to reduce the Company’s reliance on imported raw materials and improve supply chain security. The rating is, however, constrained by sustained foreign currency exposures, regulatory delays affecting its backward integration projects and exposure to commodity price volatility.
Coleman Technical Industries Limited (CTIL), incorporated on 1 July 1975 as a private limited liability company, is a major cable manufacturer and distributor in Nigeria. The Company produces over 30 main products, spanning power, control, aerial, submersible, communication, and other specialty cable categories, and maintains an extensive distribution network across Nigeria and select West African markets. CTIL’s manufacturing operations are based in Arepo and Sagamu, Ogun State, with annual installed production capacities of 130,000 metric tons for copper conductors and 48,000 metric tons for aluminium conductors.