DataPro, the technology-driven credit rating agency, has upgraded VFD Group Plc’s long-term rating from “A” to “A+” with a stable outlook for the year 2023/2024.
The rating agency, in a statement on Thursday, explained that the “A+” Rating indicates low risk in addition to very good financial strength, operating performance and business profile when compared to the standard established by DataPro.
It, therefore, said that VFD Group has a strong ability to meet its ongoing obligations.
The company’s Client Services Manager, Mr. Kehinde Rasheed, who signed the statement explained that the DataPro Rating Committee approved the rating after the assessment of the company’s financial performance, corporate governance and risk management as well as operational and regulatory environment.
He explained further that the rating also considers the operating model of the parent company and the financial strength of the subsidiaries.
The statement said the VFD’s revenue surged during the year under review, saying this was due to an increase in earnings recorded across its line of businesses.
“The Group maintained continuous revenue growth over the last five years. The latest increase was 49 per cent growth from N6.6b (Yr. 20) to N9.9b (Yr. 21).
“The Group also had a Rights Issue during the year 2021, which led to 108 per cent growth in Share Premium from N3.8b (Yr. 20) to N7.9b (Yr. 21),” the statement said.
According to the statement, “Other major Rating considerations of VFD Group Plc include the company’s stable management team, ability to attract new funds under management and strategic investments made during the year under review.”
DataPro notes that the rating carries a maximum shelf life of 12 calendar months, in line with International best practice, clarifying however that the rating is not an offer to trade in securities nor a substitute for the user’s judgement. “It is meant for reference purposes,” the statement said.