One of Nigeria’s foremost rating agency, Agusto & Co, has upgraded Axxela Limited’s corporate credit rating from Bbb (stable outlook) to Bbb+ (positive outlook).
Speaking on the new feat, the Chief Executive Officer (CEO) of the sub-Saharan Africa’s preferred fast-growing gas & power portfolio company (Axxela), Bolaji Osunsanya remarked that the company has continued to deliver exceptional performance across all the markets in which it operates with an intense focus on excellence and innovative service delivery.
Similarly, the Chief Financial Officer (CFO) of Axxela Limited, Timothy Ononiwu was quoted in a statement to have said the rating upgrade reflects Axxela’s financial and operational stability particularly as it expands its footprints across Nigeria and West Africa.
Ononiwu said, “This outcome recognizes the progress we have made as an organisation thus far, and we are excited about our future. We remain committed to providing gas and power solutions for businesses and industries across the region whilst delivering value to our stakeholders. Interestingly, our new rating profile is symbolic as we prepare to embark on a debt issuance program to drive our growth and development projects.”
What influenced Axxela’s upgrade: According to Agusto & Co., the upgrade is underpinned by the Company’s acceptable profitability, adequate working capital, satisfactory cash flow, moderate leverage and an experienced management team.
Furthermore, the rating takes into cognizance Axxela’s revenue diversification initiatives resulting in gas trading in neighbouring West African countries, as well as the ownership of the Company – Helios Investment Partners – a private equity firm with over $3.6 billion funds under management.
What you should know: Axxela is a Helios Investment Partners LLP portfolio company and a 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 at peak 80 million standard cubic feet per day to over 160 industrial and commercial customers via a vast network of gas infrastructure.