DataPro Limited, a leading national Credit Rating Agency, in its latest report has re-affirmed Interswitch Limited’s long-term rating of “AA-” with a stable outlook for the year 2021/2022, the agency has said.
The “AA-” indicates lower risk, and shows “excellent financial strength, operating performance and business profile when compared to the standard established by DataPro,” Abimbola Adeseyoju, Managing Director/CEO said in an emailed statement on Thursday.
In the opinion of the agency, Interswitch has a strong ability to meet its ongoing obligations, Adeseyoju said.
Interswitch launched a N30 billion bond issuance programme in 2019 under which the company said it planned to raise that amount through the sale of bonds over a three-year period to be undertaken by a Special Purpose Vehicle, Interswitch Africa One Plc.
In October 2019, Interswitch Group concluded a N23 billion ($63.3 million) series 1 Fixed Rate, 7-Year Senior Unsecured Callable Bonds at 15.0%. The debt notes are listed on the Nigerian Exchange Limited (NGX).
Barely a month after its debut bond issue, in November 2019, Visa invested $200 million in return for a 20% equity stake, having valued the Finzech company at $1billion, a valuation which confers “unicorn” status on Interswitch and reinforced its prospect as a large-cap Fintech player on the continent.
DataPro said its Rating Committee approved the credit rating after assessment of Interswitch’s financial performance, earnings profile, capitalisation, asset utility, liquidity, profitability, corporate governance & risk management, risk factors of its current healthy profile in the medium to long-term period.
It explained the company’s rating was supported by its experienced management team, good brand presence, diversified revenue sources and very good liquidity.
DataPro explained however that Interswitch’s “rating is constrained by its High Cost of Operations and Weak Profitability”.
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