BusinessDay

A-Z Petroleum earns BBB rating from Datapro

DataPro, the Technology-Driven Credit Rating Agency (CRA) has assigned A-Z Petroleum Products Limited a long-term rating of “BBB” with a Stable outlook for the year 2022/2023.

A statement signed by DataPro’s Client Services Manager, Kehinde Rasheed and which was made available to BusinessDay at the weekend explained that the “BBB” rating indicates slight risk.

“It shows fair financial strength, operating performance and business profile when compared to the standard established by DataPro.

“This company, in our opinion, can meet its ongoing obligations, but its financial strength is vulnerable to adverse changes in economic conditions.”

The statement pointed out that the DataPro Rating Committee approved the rating after the assessment of A-Z Petroleum Products Limited’s financial performance, capitalisation, asset utility, corporate governance, risk factors as well as the operational and regulatory environment.

Read also: Sovereign Trust Insurance gets ‘A’ rating, stable outlook from global rating agency

“The company continuously increased its revenue over the last five years. In the year 2020, the company’s revenue rose by 8 per cent while gross profit margin improved from 13% (Yr. 19) to 15% (Yr.20),” a statement signed by DataPro’s Client Services Manager said.

The rating also factored in the significant market share of A-Z in 3 out of 6 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 is said to have 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 practices.

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