By Dipo Olowookere
The N600 million fixed rate unsecured bond of C&I Leasing maturing in 2020 has been assigned ‘Bbb’ rating by Nigeria-based rating agency, Agusto & Co.
The N600 million bond unsecured bond is the second tranche under C&I leasing Plc’s N10 billion debt issuance programme.
According to a statement from the rating firm, the ‘Bbb’ rating on C&I Leasing N600 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,” the statement said.
Agusto & Co said it 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, the rating company said.
Adedapo Adesanya