A leading credit rating agency, Agusto & Co has upgraded the corporate rating of Odu’a Investment Company Limited to ‘Aa-’ with a stable outlook .
The agency unveiled the rating in its recently released 2025 Corporate Rating Report.
The upgrade from the previous rating of ‘A+’ to ‘Aa-‘ reflects Odu’a Investment’s improved operating income and cash flow, driven by higher dividends from portfolio companies, increased investment returns from non-equity assets, and stronger rental earnings.
Victor Ayetoro Head of Branding & Communication of Odu’a Investment Company Limited, said in a statement that the rating also acknowledged the Company’s strategic repositioning, including divestments from underperforming assets and reinvestment in high-yielding portfolios managed by reputable asset managers.
Speaking on the rating, OICL Group Chairman, Otunba Bimbo Ashiru said the rating upgrade confirms the Board’s commitment to prudent financial management, strategic portfolio optimization, and sustainable value creation for its shareholders.
He said:”It underscores Odu’a Investment’s resilience and adaptability in navigating economic headwinds while pursuing growth in critical sectors of the economy.”
The Group Managing Director/CEO, Mr. Abdulrahman Yinusa added that:”The improved rating reflects the impact of our ongoing 2020–2025 Strategic Plan which focuses on sweating assets, reviving legacy investments, and creating new income streams.
“As we prepare for the next phase of growth, we stay committed to strengthening our operational efficiency and delivering superior returns to our stakeholders.”
Agusto & Co also observed that Odu’a Investment’s profitability remains constrained by underperforming legacy assets that are being turned around and the early-stage nature of some recent investments.
The report also mentioned macroeconomic challenges such as inflation and high energy costs as potential risks to earnings stability.