Voluntary update - credit rating
- Published: Thursday, 03 August 2023 11:53
Omnia is pleased to inform stakeholders that GCR Ratings (“GCR”), an affiliate of Moody’s Investor Services, has upgraded Omnia's long term issuer rating to A+(ZA) from A(ZA) and affirmed the short-term issuer rating at A1(ZA). The outlook is Stable, reflecting the Group’s resilience despite volatile operating environments.
The rating upgrade reflects GCR’s view that Omnia’s strong earnings and cash flow generation remain resilient on the back of greater efficiencies derived from its operations. GCR expects the Company’s prudent approach to balance sheet management to sustain a robust financial profile.
The report also highlights the following elements of Omnia’s investment case:
- Its solid free cash flow generation and robust liquidity;
- Its position as a leading regional producer and supplier of nitrogen-based fertilizers and mining explosives in Africa, which is complemented by a growing market presence in agricultural biological products globally; and
- The Company’s strong competitiveness resulting from proprietary technologies, modernised production processes, improved supply chain control and varying degrees of integration of manufacturing capabilities across its segments.
Seelan Gobalsamy, Chief Executive Officer of Omnia, said: “The credit rating upgrade reflects Omnia’s strong operational and financial performance and delivery on our strategy. It recognises the steps we have taken to improve our resilience in these volatile times and our commitment to drive growth through geographical expansion, innovation and process optimisation. These efforts will continue to be underpinned by disciplined capital management.”
GCR’s full report is available at https://gcrratings.com/announcements/gcr-upgrades-omnias-long-term-issuer-rating-to-aza-on-strong-performance-and-maintenance-of-low-leverage-outlook-stable/ or Omnia’s Investor Relations office at
3 August 2023