Tingo Mobile gets low risk grade amid harsh operating environment

NIGERIAN credit rating agency, DataPro Limited, has assigned a long-term rating of ‘A’ with a positive outlook for 2023/2024 to Tingo Mobile Plc, despite the unfriendly business environment in the country.

Businesses operated under rising interest rates, surging inflationary pressure, and foreign exchange volatility, among other headwinds in 2022.

The economic challenges impact input costs, operating expenses, and the general profitability of businesses.

For instance, inflation, representing the overall price level for goods and services in the economy, rose from 15.60 per cent in January 2022 to 21.34 per cent in December.

According to DataPro, the rating was based on the company’s financial performance, profitability, capital structure, asset quality, liquidity, corporate governance, risk factors and management, among other criteria.

An ‘A’ positive rating indicates that Tingo has a low-risk grade with very good financial strength, operating performance and profile, according to the standards established by DataPro.

According to the rating agency, Tingo, an agri-fintech company, demonstrated sustained growth in earnings with a compound annual growth rate of 30 per cent.

In 2022, the company’s revenue rose by 35 per cent to N463 billion, and equity also provided 47 per cent funding for the company’s assets as against 22 per cent funding recorded in the previous year.

DataPro said, “The Positive Rating assigned reflects DataPro’s opinion of Tingo’s good revenue and funding profile, as well as its experienced management team.”






     

     

    It explained that at lower risk, Tingo demonstrated excellent financial strength, operating performance and business profile.

    “This company, in our opinion, has a very strong ability to meet its ongoing obligations. The short-term rating of “A1” indicates good credit quality and satisfactory capacity for timely payment of financial commitments,” it maintained.

    DataPro noted that the rating carries a maximum shelf life of 12 calendar months, in line with international best practices.

    “The Rating is therefore not an offer to trade in securities nor a substitute for the user’s judgement. It is meant for reference purposes,” it added.

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