Global Credit Ratings Company upgrades Lekki Gardens to BB+ & A2

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According to GCR, the ratings reflect Lekki Gardens Estate Limited’s strong competitive position within the Nigerian real estate sector.

The Global Credit Ratings Company Limited has upgraded the national scale long-term and short-term Issuer ratings of Lekki Gardens Estate Limited, Nigeria’s leading real estate company, to BBB+ and A2 , respectively. GCR has also accorded a national scale long-term issue rating of A to Lekki Gardens Estate Limited’s Senior Secured Bonds, affirming that the outlook on the ratings is stable.

According to GCR, the ratings reflect Lekki Gardens Estate Limited’s strong competitive position within the Nigerian real estate sector, evidenced by its strong track record of project delivery, which has supported rising earnings, stable cash flows, and moderate gearing metrics. GCR stated that Lekki Gardens remained resilient, with revenue increasing by 6.7 per cent to N20.9 billion in FY20, underpinned by rising off-take and sale volumes EBITDA margin remained firmer and well above peers at 10 per cent, supported by the delivery of higher-margin projects and cost rigour despite the COVID-19 crisis and the attendant impact on the already challenged operating climate in Nigeria.

Speaking on the significance of the Global Credit Ratings for the company, the Executive Director, Lekki Gardens Estate Limited, Emily Atebe, disclosed that the investment-grade ratings affirmed the company’s financial stability and ability to meet its financial obligations to all stakeholders “The ratings further validate the company’s consistent and sustained strong financial performance and its resilience despite the very challenging operating environment,” she said.

 

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