Yemisi Izuora
Agusto & Co. has affirmed the ‘Bbb’ rating assigned to C&I Leasing Plc’s ₦600 million fixed rate unsecured bond maturing in 2020. The issue is the second tranche under C&I leasing Plc’s
₦10 billion debt issuance programme. The rating expires on 30 June 2019.
The rating assigned to the C&I Leasing Plc ₦600 million fixed rate unsecured bond reflects the Company’s relatively long operating history, good market position in key leasing business segments and good asset quality – upheld by good capacity utilisation. The rating is however constrained by rising leverage, sub-par profitability and the capital position – which we believe requires improvement. Agusto & Co. also considers the possible impact of the fragile economy and political uncertainties may have on the C&I Leasing’s short-term growth prospects.
Growth in business volumes for C&I Leasing Plc is likely to be sustained by the current upswing in the crude oil market – which should drive significant investments in crude oil & exploration. In addition to tapping into growing opportunities in Nigeria, the Issuer is nurturing expanding beyond the shores of Nigeria.