GCR updates the Nigerian Corporate Sector Risk Scores
Summary
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
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