GCR Confirms Lekki Gardens Estate Limited Nationwide Issuer and Secured Bond Issue Ratings, Stable Outlook
Global Credit Ratings Limited (GCR) has affirmed the nationwide long-term and short-term issuer ratings of BBB+ (NG) and A2 (NG), respectively, for leading property company, Lekki Gardens Estate Limited. GCR has also affirmed Lekki Gardens Estate Limited's domestic long-term issue rating of A (NG)(EL) at N3.5bn
Secured senior fixed rate bond issue. He described the ratings outlook as stable.
GCR said the rating confirmation and stable outlook reflect the company's strong competitive position, which will continue to support sustainable earnings and cash flow, while maintaining a modest funding profile.
This would help mitigate increased risks in the Nigerian operating environment.
It was further noted that LGE has remained resilient despite current economic conditions with revenue growth in FY21 supported by increased buy and sell volumes, recording margins of EBITDA over 15% in the first half of FY22 well above its peers.
According to GCR, bond ratings follow the receipt of final and executed transaction documents, which is derived from an assessment of the estimated recovery rate under stress expected from the market values of the mortgaged properties. Using this data, GCR's estimated recovery calculation shows that secured bondholders can expect full recovery.
Discussing the relevance of the ratings, CEO Dr. Richard Nyong revealed that investment grade ratings are a testament to the firm's strong financial position as well as its ability to meet its financial obligations towards all stakeholders.
The company currently ranks among the leading property development companies in Nigeria, with a relatively strong track record, having delivered over 15,000 housing units across the residential, commercial and commercial real estate segments. Support the integrity and credibility journalism of PREMIUM TIMES Good journalism costs a lot of money. Yet only good journalism can guarantee the possibility of a good society, an accountable democracy and a transparent government. For free and continued access to the best investigative journalism in the country, we ask that you consider providing modest support to this noble endeavour. By contributing to PREMIUM TIMES, you help sustain relevant journalism and keep it free and accessible to everyone.
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Global Credit Ratings Limited (GCR) has affirmed the nationwide long-term and short-term issuer ratings of BBB+ (NG) and A2 (NG), respectively, for leading property company, Lekki Gardens Estate Limited. GCR has also affirmed Lekki Gardens Estate Limited's domestic long-term issue rating of A (NG)(EL) at N3.5bn
Secured senior fixed rate bond issue. He described the ratings outlook as stable.
GCR said the rating confirmation and stable outlook reflect the company's strong competitive position, which will continue to support sustainable earnings and cash flow, while maintaining a modest funding profile.
This would help mitigate increased risks in the Nigerian operating environment.
It was further noted that LGE has remained resilient despite current economic conditions with revenue growth in FY21 supported by increased buy and sell volumes, recording margins of EBITDA over 15% in the first half of FY22 well above its peers.
According to GCR, bond ratings follow the receipt of final and executed transaction documents, which is derived from an assessment of the estimated recovery rate under stress expected from the market values of the mortgaged properties. Using this data, GCR's estimated recovery calculation shows that secured bondholders can expect full recovery.
Discussing the relevance of the ratings, CEO Dr. Richard Nyong revealed that investment grade ratings are a testament to the firm's strong financial position as well as its ability to meet its financial obligations towards all stakeholders.
The company currently ranks among the leading property development companies in Nigeria, with a relatively strong track record, having delivered over 15,000 housing units across the residential, commercial and commercial real estate segments. Support the integrity and credibility journalism of PREMIUM TIMES Good journalism costs a lot of money. Yet only good journalism can guarantee the possibility of a good society, an accountable democracy and a transparent government. For free and continued access to the best investigative journalism in the country, we ask that you consider providing modest support to this noble endeavour. By contributing to PREMIUM TIMES, you help sustain relevant journalism and keep it free and accessible to everyone.
Donate
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TEXT ANNOUNCEMENT: Call Willie - +2348098788999
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