Global credit ratings accords Sundry Foods Ltd a high rating

Global Credit Ratings has granted Sundry Foods Limited long-term and short-term Issuer ratings of A-(NG) and A2 (NG). The company’s rating was contained in a recent report by the GCR.

The GCR report said, “GCR Ratings (“GCR”) 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.”

The GCR emphasised that the company sustained a strong earnings trajectory over the review period even as it said that SFL’s revenue almost doubled and outperformed the budget.

According to GCR, Sundry Foods recorded 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. Speaking on the milestone Sundry Food’s Managing Director, Mr Ebele Enunwa, expressed happiness with the GCR affirmation.

‘’This affirmation, which follows the thorough an independent assessment by a reputable international credit agency is a testament that we are progressively growing stronger. It also highlights the fact that we are one of the highest credit-worthy organisations in the country and very good investment potential for many local and international investors and financiers,’’ Enunwa said.