By Tunde Oso
DataPro credit rating agency has assigned Babban Gona Farmer Services Nigeria Limited long-term rating of BBB+ with a stable outlook for the year 2021/2022.
The “BBB+” 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 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.
The rating of Babban Gona Farmer Services Nigeria Limited is supported by its strong earning profile, good asset quality, very good liquidity and experienced management team.
Babban Gona Farmer Services Nigeria Limited 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 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.
Comments expressed here do not reflect the opinions of Vanguard newspapers or any employee thereof.