Global ratings agency upgrades Axxela’s risk profile

Axxela Limited, an energy solutions provider said that the Global Credit Ratings (GCR)has upgraded its credit risk profile, a development indicating the company is maintaining a robust, competitive outlook.

The GCR upgraded Axxela’s National Scale Long-Term Issuer rating to “A-(NG)” and affirmed the Short-Term Issuer at “A2(NG)”, with a Stable Outlook.

The company said it also received an upgraded National Scale Long Term Issue rating for its ‘’Axxela Funding 1 Plc’s N11.5bn Series 1 Senior Secured Fixed Rate Bonds’’ from “BBB+” to “A-(NG)(EL)’’, with the Outlook accorded as Stable.

In a release issued by the company, citing the GCR report, the ratings upgrade is underpinned by Axxela’s established market position which has enabled the company and its subsidiaries to continue to report strong earnings and cash flows, thereby supporting comfortable credit protection metrics despite on-going expansion.

Bolaji Osunsanya, CEO, Axxela, speaking on the upgrade, said, “We are pleased with the rating upgrades as they are a further confirmation of our market leadership position. Our continued growth and business expansion despite the challenges of a pandemic year is proof of a resilient business model’.

Axxela is a Helios Investment Partners LLP portfolio company, and the first privately-owned designated natural gas shipper on the West African Gas Pipeline (WAGP).

Axxela is also the pioneering private sector-led developer of natural gas distribution in Nigeria, delivering natural gas to over 185 industrial and commercial clients via a vast network of gas infrastructure.

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The upgraded rating is supported by Axxela’s competitive position in the energy sector, with its product offering spanning the natural gas value chain: processing, transmission & distribution, power generation and energy infrastructure development, and with operations across Nigeria and West Africa.

‘’This upgrade represents a positive milestone for us as an organisation. It is the result of hard work, professionalism and consistent focus on business efficiency, financial stability and deep commitment to operational excellence.

Recognition of this nature propels us for the future,” Timothy Ononiwu, the Chief Financial Officer stated.

Axxela provides unique energy solutions primarily through its subsidiaries: Gaslink Nigeria Limited, Gas Network Services Limited, Central Horizon Gas Company Limited, and Transit Gas Nigeria Limited with over 300km in gas pipeline infrastructure built.