Datapro Upgrades African Foundries to A+, Maintains Stable Outlook
DataPro, a technology-driven credit rating agency (CRA) has upgraded African Foundries Limited’s long-term rating to “A+” with a Stable Outlook for the year 2021/2022.
The rating agency, in a statement explained that the “A+” indicates low risk and shows very good financial strength, operating performance and business profile when compared to the standard established by DataPro.
The statement signed by the agency’s Client Services Manager, Mr. Kehinde Rasheed affirmed the ability of the company rated to meet its obligations.
“African Foundries Limited, in our opinion, has a strong ability to meet its ongoing obligations,” the statement said, pointing out that “DataPro Rating Committee approved the rating after assessment of the company’s financial performance, corporate governance and risk management, regulatory environment, risk factors and future outlook of its current healthy profile in the medium to long-term period.”
Rasheed said the company continues to enjoy a wide market share and increased revenue underpinned by the steady upgrade of operating capacity.
He added that a revenue growth trend of the company gained traction during the year under review.
For instance, he said African Foundries’ total earnings went up by 106% from N59.8bn (Yr.20) to N123b (Yr.21), pointing out that total liabilities, which comprised current and non-current liabilities decreased by 22% from N71.7bn(Yr.20) to N56bn (Yr.21).
According to him, this was largely due to a decline in current liabilities by 33% from N58.5bn (Yr.20) to N39.3bn (Yr.21).
