Global Credit Ratings Company upgrades Lekki Gardens to BBB+, A2

The Global Credit Ratings Company Limited (GCR) has upgraded the national scale long-term and short-term Issuer ratings of Lekki Gardens Estate Limited, Nigeria’s leading real estate company, to BBB+ (NG) and A2 (NG), respectively.

GCR has also accorded a national scale long-term issue rating of A (NG)(EL) to Lekki Gardens Estate Limited’s Senior Secured Bonds, affirming that the outlook on the ratings is stable.

According to GCR, the ratings reflect Lekki Gardens Estate Limited’s strong competitive position within the Nigerian real estate sector, evidenced by its strong track record of project delivery, which has supported rising earnings, stable cash flows, and moderate gearing metrics.

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GCR stated that Lekki Gardens remained resilient, with revenue increasing by 6.7 percent to N20.9bn in FY20, underpinned by rising off-take and sale volumes EBITDA margin remained firmer and well above peers at 10 percent, supported by the delivery of higher-margin projects and cost rigour despite the COVID-19 crisis and the attendant impact on the already challenged operating climate in Nigeria.

“As of 1H FY21, LGE has achieved a 29% annualized growth in revenue, with EBITDA margin registering at 18 percent. GCR expects the latent housing demand to continue to drive growth prospects, but the deferral of key discretionary spending, such as home purchases, will likely impact demand and pricing,” says GCR.

Speaking on the significance of the Global Credit Ratings for the company, the Executive Director, Lekki Gardens Estate Limited, Emily Atebe, disclosed that the investment-grade ratings affirmed the company’s financial stability and ability to meet its financial obligations to all stakeholders.

The ratings further validate the company’s consistent and sustained strong financial performance and its resilience despite the very challenging operating environment.” she said.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.