GCR updates the Nigerian Corporate Sector Risk Scores
Lagos, Nigeria, 29 April 2022 – GCR Ratings (“GCR”) has updated its Nigerian Corporate Sector Risk Scores. The following Sector Risk Scores have been updated since the last publication:
Inclusion of a risk score for Commercial Property, initial score of 2.50
There are no changes to other sector risk scores as the last publication (released on 1 April 2022) reflects the stability that is returning to the economy following the COVID-19 disruption. However, cognisance is taken of the greater pressure on earnings due to rising cost inflation, albeit likely to be offset somewhat by the benefits of higher commodity prices to the Nigerian economy.
The corporate sector risk score is a combination of a) cyclicality b) ease of doing business and c) sector specific dynamics scores and is intended to provide users with an overview of the major factors that impact GCR’s assessment of the relative risk of each sector.
Corporate Sector Risk Scores are assessed on a scale of between 0-13 and are a key factor in determining the operating environment component score for each Issuer. The core of the GCR Ratings Framework is based on GCR’s opinion that an entity’s operating environment largely frames its creditworthiness. As a result, the operating environment analysis anchors the underlying risk score for the GCR ratings criteria. GCR combines elements of the country risk and sectoral risk analysis, blended across countries for Issuers operating across multiple jurisdictions, to anchor a corporate to its current operating conditions. For more details, please read the related criteria and research listed below.
GCR will periodically publish updated “Nigerian Corporate Sector Risk Scores”, which will supersede previous publications. The publication titled “Nigerian Corporate Sector Risk Scores, 29 April 2022” supersedes the publication “Nigerian Corporate Sector Risk Scores, 1 April 2022”.
Criteria for the GCR Ratings Framework, January 2022
Criteria for Rating Corporate Entities, January 2022
Criteria for Rating Real Estate Investment Trusts and Other Commercial Property Companies, January 2022
GCR Rating Scales, Symbols & Definitions, May 2019
GCR’s Country Risk Score Report, December 2021
GCR’s Nigeria Corporate Sector Risk Scores Report, 1 April 2022
CREDIT RATINGS ISSUED AND RESEARCH PUBLICATIONS PUBLISHED BY GCR, ARE GCR’S OPINIONS, AS AT THE DATE OF ISSUE OR PUBLICATION THEREOF, OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. GCR DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL AND/OR FINANCIAL OBLIGATIONS AS THEY BECOME DUE. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: FRAUD, MARKET LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND GCR’S OPINIONS INCLUDED IN GCR’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. CREDIT RATINGS AND GCR’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND GCR’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL OR HOLD PARTICULAR SECURITIES. NEITHER GCR’S CREDIT RATINGS, NOR ITS PUBLICATIONS, COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. GCR ISSUES ITS CREDIT RATINGS AND PUBLISHES GCR’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING OR SALE.
These cookies are necessary for the website to function and cannot be switched off in our systems. They are normally set in response to actions made by you, amounting to a request for services, such as setting your privacy preferences, logging-in or completing forms. You can set your browser to block or alert you about these cookies, but please note that parts of the website may no longer function correctly. Note: These cookies do not store any personally identifiable information.
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors navigate the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies, the site will not be performance optimised for your use.