DataPro Limited, the Technology-Driven Credit Rating Agency (CRA) has in its latest report assigned A-Z Petroleum Products Limited long-term rating of “BBB” with a Stable outlook for the year 2022/2023.
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, has the ability to meet its ongoing obligations, but its financial strength is vulnerable to adverse changes in economic conditions.
The DataPro Rating Committee approved the Rating after the assessment of the Company’s Financial Performance, Capitalisation, Asset Utility, Corporate Governance, Risk Factors as well as Operational and Regulatory Environment.
The Company continuously increased its Revenue over the last five years. In the year 2020, the Company Revenue rose by 8% while Gross Profit Margin improved from 13% (Yr. 19) to 15% (Yr. 20). The Rating also factored 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 had 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 Practice. The Rating is therefore not an offer to trade in securities nor a substitute for the user’s judgement. It is meant for reference purposes.