MD,  ADH, Mr. Abubakar Jimoh

 

The Associated Discount House Limited (ADH) has said it was rated ‘A/A1’ (long/short term) with a ‘stable ‘outlook by the Global Credit Rating (GCR) Company.

The A/A1 rating according to a statement made available to THISDAY meant that in the short term, ADH belonged to the ‘high grade’ category and had very high certainty of timely payment.

It further explained that the rating agency also stated that the acquisition of ADH’s major shareholder bank- former Intercontinental Bank by Access Bank Plc has significantly enhanced ADH’s brand acceptance.

“On the back of the aforementioned factor, total borrowings grew by 140 per cent to close at N54 billion at the end of 2011 financial year, with non-bank placements comprising a quarter, from 6.9 per cent in 2010 financial year,” it added.

GCR also reaffirmed that ADH belonged to the investment grade category in its sub-sector of the financial services industry. In the course of the exercise, GCR said it took cognisance of the improvement in ADH’s asset quality, with nil non-performing commercial bills reflected in 2011.

Commenting on the rating, the Managing Director of ADH, Mr. Abubakar Jimoh, said: “This rating confirms the excellent work the management of the company has been doing to reposition ADH as the foremost discount house in Nigeria delivering value to its clientele and ensuring good return in investment for the shareholders”.

The company’s financials showed that the group’s total asset closed at N77.278 billion, while its shareholders’ fund stood at N5.829 billion in 2011, up by 15.26 per cent from N5.057 billion recorded a year earlier. Its profit before tax also closed at N869 million in 2011 compared with N453 million achieved in 2010.