Economy

GCR Upgrades C&I Leasing Issuer Rating To BBB(NG)

Published

8 years ago

10/11/2017

By Modupe Gbadeyanka

Global Credit Ratings (GCR) has upgraded the long term national scale issuer rating assigned to C&I Leasing Plc to BBB(NG) and affirmed the short term at A3(NG); with the outlook accorded as stable. According to a statement issued by the local rating agency, the above credit ratings were accorded to C&I Leasing Plc after taking into cognisance of C&I’s well-entrenched position in key markets, as borne out by a relatively strong client retention and progression in market share amidst challenging operating conditions.

It explained that the repositioning of the group’s business focus on strongly performing segments has also supported sound traction in the operating lease space, with performance expected to show resilience through the cycle.

Having registered sound top line growth (at a compound rate of 10.2%) over the four years under review, the group achieved a 43% annualised increase in revenue in 3Q FY17, on the back of new vessel leasing contracts.

The EBITDA margin has shown moderate variability over the review period, with transient compression seen in FY16 offset by the traction from higher-yielding leases secured in the current year.

Specifically, the margin rebounded to 34.7% in 3Q FY17, well above a four-year average of 27.5%, and is projected at 36.2% for the full year.

GCR is cognisant of pressure that could arise from traction in the operating lease profile, which could cause margin volatility, should management fail to manage the residual risk inherent in these contracts effectively.

Accordingly, progress will continue to be monitored closely to assess the repackaging of the underlying assets into new contracts or their disposal to maintain a robust earnings stream or efficiently recycle capital through the cycle, the rating firm said.

Adjusting performance for sizeable distortions arising from cross currency exposures and changes in valuations reveals the moderate cash generative capabilities of C&I’s operations.

That said, note is taken of the capital intensity of the trading cycle and the sizeable debt servicing outflows. GCR has considered the ample untapped facilities that are in place, the strength of the financing counterparties, the risk transfer in respect to the finance leases and sound performance of the leasing book.

As with most lease financing entities, the Group is relatively thinly capitalised. In comparison, debt has risen markedly from just N11bn at FY13 to N29bn at 3Q FY17 to finance the rapidly advancing operating lease exposure, which has seen gross and net gearing trend at high levels, over the review period, closing 3Q FY17 at 435.6% and 413.9% respectively (FY16: 441%; 423%).

That said, earnings based gearing metrics are relatively comfortable for the Group’s operating model, registering at 369% and 350% on a gross and net basis respectively at 3Q FY17 (FY16: 540%; 519%). Coupled with the expected resilience of cash earnings expected over the rating horizon, this gives comfort in spite of the relatively erratic interest coverage metrics.

A significant improvement in profitability metrics, asset quality and gearing could result to a positive rating action.

However, material weakening in profitability, debt to EBITDA or pressure on debt service due to unforeseen fall off in business volumes or deterioration in operating conditions. Furthermore, marked deterioration in asset quality would warrant rating action, GCR noted.

Economy

Customs Street Chalks up 0.12% on Santa Claus Rally

Published

6 hours ago

25/12/2025

Dipo Olowookere

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited witnessed Santa Claus rally on Wednesday after it closed higher by 0.12 per cent.

Strong demand for Nigerian stocks lifted the All-Share Index (ASI) by 185.70 points during the pre-Christmas trading session to 153,539.83 points from 153,354.13 points.

In the same vein, the market capitalisation expanded at midweek by N118 billion to N97.890 trillion from the preceding day’s N97.772 trillion.

Investor sentiment on Customs Street remained bullish after closing with 36 appreciating equities and 22 depreciating equities, indicating a positive market breadth index.

Guinness Nigeria chalked up 9.98 per cent to trade at N318.60, Austin Laz improved by 9.97 per cent to N3.20, International Breweries expanded by 9.85 per cent to N14.50, Transcorp Hotels rose by 9.83 per cent to N170.90, and Aluminium Extrusion grew by 9.73 per cent to N16.35.

On the flip side, Legend Internet lost 9.26 per cent to close at N4.90, AXA Mansard shrank by 7.14 per cent to N13.00, Jaiz Bank declined by 5.45 per cent to N4.51, MTN Nigeria weakened by 5.21 per cent to N504.00, and NEM Insurance crashed by 4.74 per cent to N24.10.

Yesterday, a total of 1.8 billion shares valued at N30.1 billion exchanged hands in 19,372 deals versus the 677.4 billion shares worth N20.8 billion traded in 27,589 deals in the previous session, implying a slump in the number of deals by 29.78 per cent, and a surge in the trading volume and value by 165.72 per cent and 44.71 per cent apiece.

Abbey Mortgage Bank was the most active equity for the day after it sold 1.1 billion units worth N7.1 billion, Sterling Holdings traded 127.1 million units valued at N895.9 million, Custodian Investment exchanged 115.0 million units for N4.5 billion, First Holdco transacted 40.9 million units valued at N2.2 billion, and Access Holdings traded 38.2 million units worth N783.3 million.

Economy

Yuletide: Rite Foods Reiterates Commitment to Quality, Innovation

Published

7 hours ago

25/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Nigerian food and beverage company, Rite Foods Limited, has extended warm Yuletide greetings to Nigerians as families and communities worldwide come together to celebrate the Christmas season and usher in a new year filled with hope and renewed possibilities.

In a statement, Rite Foods encouraged consumers to savour these special occasions with its wide range of quality brands, including the 13 variants of Bigi Carbonated Soft Drinks, premium Bigi Table Water, Sosa Fruit Drink in its refreshing flavours, the Fearless Energy Drink, and its tasty sausage rolls — all produced in a world-class facility with modern technology and global best practices.

Speaking on the season, the Managing Director of Rite Foods Limited, Mr Seleem Adegunwa, said the company remains deeply committed to enriching the lives of consumers beyond refreshment. According to him, the Yuletide period underscores the values of generosity, unity, and gratitude, which resonate strongly with the company’s philosophy.

“Christmas is a season that reminds us of the importance of giving, togetherness, and gratitude. At Rite Foods, we are thankful for the continued trust of Nigerians in our brands. This season strengthens our resolve to consistently deliver quality products that bring joy to everyday moments while contributing positively to society,” Mr Adegunwa stated.

He noted that the company’s steady progress in brand acceptance, operational excellence, and responsible business practices reflects a culture of continuous improvement, innovation, and responsiveness to consumer needs. These efforts, he said, have further strengthened Rite Foods’ position as a proudly Nigerian brand with growing relevance and impact across the country.

Mr Adegunwa reaffirmed that Rite Foods will continue to invest in research and development, efficient production processes, and initiatives that support communities, while maintaining quality standards across its product portfolio.

“As the year comes to a close, Rite Foods Limited wishes Nigerians a joyful Christmas celebration and a prosperous New Year filled with peace, progress, and shared success.”

Economy

Naira Appreciates to N1,443/$1 at Official FX Market

Published

7 hours ago

25/12/2025

Adedapo Adesanya

By Adedapo Adesanya

The Naira closed the pre-Christmas trading day positive after it gained N6.61 or 0.46 per cent against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, December 24, trading at N1,443.38/$1 compared with the previous day’s N1,449.99/$1.

Equally, the Naira appreciated against the Pound Sterling in the same market segment by N1.30 to close at N1,949.57/£1 versus Tuesday’s closing price of N1,956.03/£1 and gained N2.94 on the Euro to finish at N1,701.31/€1 compared with the preceding day’s N1,707.65/€1.

At the parallel market, the local currency maintained stability against the greenback yesterday at N1,485/$1 and also traded flat at the GTBank forex counter at N1,465/$1.

Further support came as the Central Bank of Nigeria (CBN) funded international payments with additional $150 million sales to banks and authorised dealers at the official window.

This helped eased pressure on the local currency, reflecting a steep increase in imports. Market participants saw a sequence of exchange rate swings amidst limited FX inflows.

Last week, the apex bank led the pack in terms of FX supply into the market as total inflows fell by about 50 per cent week on week from $1.46 billion in the previous week.

Foreign portfolio investors’ inflows ranked behind exporters and the CBN supply, but there was support from non-bank corporate Dollar volume.

As for the cryptocurrency market, it witnessed a slight recovery as tokens struggled to attract either risk-on enthusiasm or defensive flows.

The inertia follows a sharp reversal earlier in the quarter. A heavy selloff in October pulled Bitcoin and other coins down from record levels, leaving BTC roughly down by 30 per cent since that period and on track for its weakest quarterly performance since the second quarter of 2022. But on Wednesday, its value went up by 0.9 per cent to $87,727.35.

Further, Ripple (XRP) appreciated by 1.7 per cent to $1.87, Cardano (ADA) expanded by 1.2 per cent to $0.3602, Dogecoin (DOGE) grew by 1.1 per cent to $0.1282, Litecoin (LTC) also increased by 1.1 per cent to $76.57, Solana (SOL) soared by 1.0 per cent to $122.31, Binance Coin (BNB) rose by 0.6 per cent to $842.37, and Ethereum (ETH) added 0.3 per cent to finish at $2,938.83, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.