DataPro, the technology-driven credit rating agency, has upgraded Babban Gona Farmer Services Nigeria Limited’s long-term Rating from “BBB+” to “A-” with a stable outlook for 2022/2023.
A statement from the company at the weekend explained that the rating upgrade reflects the cumulative average growth rate of 24 per cent in revenue during the period 2017-2020, adding that revenue was more than doubled in the year 2021, which translates to a significant growth of 179 percent.
Client Services Manager, DataPro credit agency Mr. Kehinde Rasheed, said in the statement that the “A-” indicates Low Risk. “It shows excellent financial strength, operating performance, and business profile compared to the standard established by DataPro.
“This company, in our opinion, can meet its ongoing obligations. The company’s hubs are spread across 16 states, including the Federal Capital Territory. “
He pointed out that the DataPro Rating Committee approved the Rating after an assessment of the company’s financial performance, corporate governance & risk management, risk factors and future outlook of its current healthy profile in the medium to long-term period.
“Babban Gona Farmer Services Nigeria Limited Rating is supported by its strong earning Profile, good asset quality, excellent liquidity, and an experienced management team,” the statement added.
The statement disclosed that the company had a short-term rating of “A1” which indicates good credit quality and satisfactory 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. The rating is, therefore, not an offer to trade in
neither Securities nor a substitute for the user’s judgment. It is meant for reference purposes,” the statement warned.