DataPro, the technology-driven credit rating agency has assigned Babban Gona Farmer Services Nigeria Limited a long-term rating of “BBB+” with a stable outlook for 2021/2022.
In a statement by its Client Service Manager, Kehinde Rasheed yesterday, DataPro explained that the “BBB+” indicates slight risk.
He said: “It shows fair financial strength, operating performance and business profile when compared to the standard established by DataPro. “This company, in our opinion, can meet its ongoing obligations, but its financial strength is vulnerable to adverse changes in economic conditions.”
It pointed out that the DataPro rating committee approved the rating after assessment of the company’s financial performance, corporate governance and risk management, risk factors, and future outlook of its current healthy profile in the medium to long-term period.
The statement said the rating of Babban Gona Farmer Services Nigeria Limited is supported by its strong earning profits, profile, good asset quality, very good liquidity, and experienced management.
“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,” it said.
The rating company, however, noted that the rating carries a maximum shelf life of 12 calendar months, in line with international best practice.
He further explained that the rating is not an offer to trade in securities not a substitute for the user’s judgment because it is for reference purpose.