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Eunisell retains investment, stable outlook credit rating

Eunisell redeems N4bn commercial paper

Eunisell Limited, a specialty chemical and engineering solutions firm in Africa, has maintained its national scale long and short-term ratings of BBB (NG) and A3(NG) respectively with a stable outlook for the year 2021/2022.

This was disclosed in a fresh report by Global Credit Ratings (GCR), an international agency that assigned similar credit status to Eunisell for the year 2021.

The company has sustained its good standing despite the impact of Covid-19, global logistics disruptions, and other challenges in the operating business environment during the year.

According to the GCR Report, the ratings indicated slight risk, showing good financial strength, operating performance, and business profile when compared to the standards established by the rating agency.

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

It added that Eunisell rating “balances a strong niche market position, sound revenue trajectory, and the substantial liquidity coverage while it reported firmer operating profit in recent years, underpinned by a shift in product mix.”

GCR further stated that the latest rating followed assessment of the companies’ financial performance, capital adequacy, asset quality, liquidity, profitability, risk factors, and outlook in the medium to long-term period.

“Eunisell maintains well-established positions in all its key operating segments. This is underpinned by its long operational record of accomplishment, the ongoing expansion of its chemical blending capacity, and good brand recognition, which has facilitated long-term relationships with industry-leading clientele and global vendors.

“Earnings performance is positive to the ratings, underpinned by the steady revenue progression on the back of continuous product innovation and demand-led volume growth,” it stated.

Speaking on the development, Chika Ikenga, Eunisell group managing director, said, “The rating represents a positive milestone for Eunisell and a further confirmation of capacity. Our continued growth and business expansion despite the challenges of a pandemic year is proof of a resilient business model. We will continue to strengthen our operations in order to remain competitive across all key market operating segments whilst delivering value to stakeholders.

“Our good standing has also earned us supports from development financial institution (DFIs) and multi-lateral organisations like BOI and AFREXIM,” he noted.

Eunisell is Nigeria’s foremost specialty chemicals, fluids and energy productions solutions company which has operated for over 25 years in West Africa.