Axxela Limited, Gas & Power Portfolio Company, said its corporate credit rating has been upgraded by Agusto & Co., one of Nigeria’s foremost rating agency, from “Bbb” to “Bbb+” with a positive outlook.
Commenting on the upgrade, Axxela Limited Chief Financial Officer, Timothy Ononiwu, said: “This rating upgrade reflects Axxela’s financial and operational stability particularly as we expand our footprints across Nigeria and West Africa. This outcome recognises the progress we have made as an organisation thus far, and we are excited about our future.
“We remain committed to providing gas and power solutions for businesses and industries across the region whilst delivering value to our stakeholders. Interestingly, our new rating profile is symbolic as we prepare to embark on a debt issuance programme to drive our growth and development projects”.
Speaking on the new achievement, Axxela Limited Chief Executive Officer, Bolaji Osunsanya, said: “Axxela continues to deliver exceptional performance across all the markets in which it operates with an intense focus on excellence and innovative service delivery.”
According to Agusto & Co., the upgrade is underpinned by the company’s acceptable profitability, adequate working capital, satisfactory cash flow, moderate leverage and an experienced management team. Furthermore, the rating takes into cognizance Axxela’s revenue diversification initiatives resulting in gas trading in neighboring West African countries, as well as the ownership of the Company – Helios Investment Partners – a private equity firm with over $3.6 billion funds under management.
The rating agency also noted that it expects the Company’s financial performance to improve, leveraging its growing and expanding customer base as well as the positive impact from gas exports.
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