Africa’s leading credit rating agency Agusto & Co. has assigned “A- RATING to Total E&P (Nigeria) Staff Multipurpose Cooperative Society Limited (Total Coop). The rating is hinged on Total Coop’s strong asset growth with low loan default rates, good profitability, sufficient capital, and moderate leverage. The rating also considered the immense support of Total E&P Nigeria Limited as the host organization.
Total Coop has adequate corporate governance structures in place with the Cooperative Management Committee (CMC) and management employees of Total Coop who provide strategic oversight function. Total Coop also has an Audit and Supervisory Committee that checks the activities of the CMC and Management Staff.
Total Coop had a balance sheet footing of ₦57.2 billion as of 31 December 2019, representing a 27% growth from the prior year. Over the last three years, the growth of total assets averaged 29%, mainly driven by the growth in members’ deposits, bank borrowings, and equity. The accretion of total assets has provided the impetus for growth in net earnings, which increased by a 13% CAGR over the same three-year period. Total Coop has recorded an average pre-tax return on equity and pre-tax return on assets of 19.3% and 6.2% respectively over the last three years.
Total Coop should continue to exhibit low loan delinquency rates with prime obligors and the staunch support of the host organization while core capital and leverage should remain moderate.