GCR accords Sundry Foods A-(NG) ,outlook revised to positive

Foods Services Company in Nigeria, Sundry Foods Limited (SFL) has been accorded the national scale long-term and short-term Issuer ratings of A-(NG) and A2 (NG), respectively by international rating agency, Global Credit Ratings (GCR).

SFL’s Head, Marketing, Mr Nduka Mokwunye, said in a statement that the affirmation of the company’s national credit ratings by GCR was contained in the latest report of the credit rating agency.

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The statement said: ‘’GCR Ratings has affirmed the national scale long-term and short-term Issuer ratings of A-(NG) and A2(NG), respectively assigned to Sundry Foods Limited (“Sundry Foods” or “the Company”). Concurrently, GCR has affirmed the national scale long-term Issue rating of A-(NG)accorded to Sundry Foods Funding SPV Plc’s N2.5bn Series 1 Bonds. The Outlook on the rating has been revised to Positive.’’

In arriving at its decision, GCR reiterated that the company has sustained a strong earnings trajectory over the review period even as it said that SFL’s revenue almost doubled and outperformed budget.

‘’This was underpinned by growing customer patronage and higher prices across business segments. Despite persistent inflationary pressure and the recent surge in energy cost, efficient cost control saw EBITDA margin improve to 18.6% in FY21 and 26% during 1Q FY22 (FY20:17.8%),’’ GCR said.

The foremost rating agency emphasized that ‘’the Positive Outlook on Sundry Foods’ ratings reflects its strong growth in earnings and robust cash flows, which have keptgearing metrics moderate, despite the ongoing expansion.’’

Responding to the rating, SFL’s Managing Director, Mr Ebele Enunwa said he is pleased with the GCR affirmation of national scale long-term and short-term Issuer ratings of A-(NG) and A2 (NG) with revised positive outlook.