Tingo Mobile Gets First Issuer Rating, Positive Outlook

DataPro, a technology-driven credit rating agency has assigned Tingo Mobile Plc a long-term rating of ‘A’ with a positive outlook for 2023/2024.

A statement signed by DataPro’s Client Services Manager. Mr. Kehinde Rasheed, explained that considerations for the rating assigned included the company’s financial performance, profitability, capital structure, asset quality, liquidity, corporate governance, risk factors, and management.

“Tingo Mobile demonstrated sustained growth in earnings with a compound annual growth rate of 30 per cent. In the year 2022, revenue rose by 35 per cent to N463 billion. Equity also provided 47 per cent (Yr. 22) funding for the company’s assets as against 22 per cent funding recorded in the previous year,” the statement explained.

It added that the positive rating assigned reflects DataPro’s opinion of Tingo’s good revenue and funding profile, as well as its experienced management team.

The statement explained that by scoring ‘A’ it shows that the company has lower risk. “It shows excellent financial strength, operating performance, and business profile when compared to the standard established by DataPro.

“This company, in our opinion, has a very strong ability to meet its ongoing obligations,” it added.

The rating company also explained that the short-term rating of ‘A1’ indicates good credit quality and sufficient capacity for timely payment of financial commitments. It however clarified that the rating carries a maximum shelf life of 12 calendar months, in line with international best practice, pointing out that the rating is therefore not an offer to trade in securities, nor a substitute for the user’s judgment. “It is meant for reference purposes,” the statement said.