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DataPro plans new course in credit rating industry

By Gloria Nwafor
29 October 2021   |   4:00 am
Amid the COVID-19 pandemic, Credit Rating Agency (CRA), DataPro has put plans together to chart a new course in the industry on how investors and issuers can drive economic growth and development.

Chief Executive Officer of DataPro, Abimbola Adeseyoju

Amid the COVID-19 pandemic, Credit Rating Agency (CRA), DataPro has put plans together to chart a new course in the industry on how investors and issuers can drive economic growth and development.

Managing Director and Chief Executive Officer of DataPro, Abimbola Adeseyoju, said this would be actualised through the various securities, products and services available in the Nigerian debt market.

He said this during the inaugural edition of DataPro’s yearly webinar on ‘Post-COVID economic recovery: Credit rating imperatives for issuers and investors’, held in conjunction with the Association of Issuing Houses of Nigeria (AIHN).

Adeseyoju called for greater socialisation of the crucial role played by CRAs in the efficient allocation of capital and resources within the economy.

At the programme, Director-General, Securities and Exchange Commission (SEC), Lamido Yuguda, who was represented by Head of Monitoring Department, SEC, Adamu Sambo, admonished CRAs to focus on investors’ activities within the capital market.

In his keynote address, Chief Executive Officer, FMDQ Group, Bola Koko, who spoke on ‘Galvanising the capacity of the Nigerian debt capital market’, noted that the debt capital market has the capacity to transform Nigerians to empowering markets towards delivering economic prosperity.

He listed market debt, product and investment diversification, enabling environment and operating efficiency as factors that will serve as tailwind for the development of the capital market.

Represented by the Managing Director of FMDQ Securities Exchange Limited, Tumi Sekoni, Koko encouraged stakeholders on the progress made in the debt capital market value chain and jointly sought for ways to improve the liquidity and diversity of the capital market.

Chief Financial Officer and Executive Director, BUA Cement, Jacques Piekarski, said the debt market could accelerate productivity in the system by controlling interest rate, streamlining the debt issuing process and relaxing requirement for accessing funds.

He mentioned financial performance, operational efficiency, good governance and risk management as some of the critical success factors that could be advantageous to issuers.

Meanwhile, DataPro, has in its latest report, assigned Flour Mills of Nigeria (FMN) Plc. long-term rating of “A” with a positive outlook for the year 2021/2022.

A statement by the firm, said with its established standard, the “A” indicates low risk, which showed very good financial strength, operating performance and business profile.

The DataPro Rating Committee approved the rating after assessment of the company’s financial performance, corporate governance and risk management, regulatory environment outlook of its current healthy profile in the medium to long-term period.

With these, it said FMN has a strong ability to meet ongoing obligations.

It noted that the rating carries a maximum shelf life of 12 months in line with International best practice.