A-Z Petroleum Products Limited has earned a long-term rating of ”BBB” with a stable outlook for the year 2022.
The rating was done by DataPro, the technology-driven credit rating Agency (CRA) has in its latest report assigned. According to DataPro, the ”BBB” rating indicates slight risk.
In a statement signed on behalf of the agency by Kehinde Rasheed, Client Services Manager, DataPro observed that the A-Z performance and business profile when compared to the standard established by DataPro shows some promises.
“The company, in our opinion, has the ability to meet its ongoing obligations, but its financial strength is vulnerable to adverse changes in economic conditions.”
Expatiating, it stated that the DataPro Rating Committee approved the rating after the assessment of the company’s financial performance, capitalisation, asset utility, corporate governance, risk factors as well as operational and regulatory environment.”
The company, it further stressed, “Continuously increased its revenue over the last five years. In the year 2020, the company revenue rose by 8% while Gross Profit Margin improved from 13% (Yr. 19) to 15% (Yr. 20).
The rating also factored the significant Market Share of A-Z in three out of six geopolitical zones in Nigeria.
Other major rating considerations of A-Z Petroleum Products Limited include the company’s experience management team and its very good financial performance.”
A-Z Petroleum Products Limited had a short-term rating of ”A2″ which indicates fair credit quality and adequate capacity for timely payment of financial commitments.
DataPro notes that the rating carries a maximum shelf life of 12 calendar months, in line with international best practice. The Rating is therefore not an offer to trade in securities nor a substitute for the user’s judgement. It is meant for reference purposes.