GCR Downgrades Global Accelerex on Weaker Financial Profile
GCR Ratings has downgraded Global Accelerex Limited’s national scale long and short-term issuer ratings to BB-(NG) and B(NG) from BBB-(NG) and A3(NG) respectively.
In rating note, GCR said it has also downgraded Accelerex SPV Plc’s N2.275 billion Series 1 Senior Unsecured Bonds’ national scale long-term issue rating to BB-(NG). Outlooks on the ratings have been revised to Negative from Rating Watch Evolving, the rating agency said.
GCR said Global Accelerex Limited, a wholly owned subsidiary of Accelerex Holdings, a non-operating holding company is based in Mauritius, with subsidiaries in Kenya, Rwanda, Tanzania, Ghana and DR Congo.
The agency highlighted that the ratings are however based on the company’s standalone strengths and weaknesses as Accelerex Holdings is currently in process of consolidating all subsidiaries.
“The rating downgrade and negative outlook both reflect sustained earnings pressure which has weakened liquidity and credit protection metrics”, GCR explained.
Ratings analyst said the company’s liquidity is a major rating constrain, with liquidity sources coverage of uses registering below 1x in September 2025, similar to prior year, due to working capital pressure.
To manage liquidity, Accelerex Holdings has committed to providing short-term liquidity support in addition to imminent capital injection to support liquidity, GCR said.
Although, potential change in business model to asset-heavy operation could continue to strain liquidity metric. In the first nine months of 2025, Global Accrelerex’s bottom line turned positive (with a profit after tax of N194.6 million) driven mainly by stronger cost efficiency which saw EBITDA grow to N645.0 million from negative of N548.2 million in 2024.
However, topline growth continues to underperform historical levels, ratings analysts stated, adding that EBITDA margin is expected to be around 10-12% over the outlook period on the back of sustained cost control while revenue growth will remain tepid.
GCR stated that post outlook earnings recovery could result from the successful implementation of the new business strategy of acquiring top merchants to grow transaction income.
Cashflow and leverage metrics were mainly impacted by weak earnings generating capacity. Additionally, the sustained negative shareholders’ fund indicates weakened capital structure.
Net debt to EBITDA registered at 3.1x, funds from operations to debt was 25.2%, while EBITDA coverage of interest expenses registered at a low level at 2.6x as of September 2025.
However, GCR said its assessment considers the potential improvements in leverage metrics over the next 6 to 12 months, predicated on imminent additional capital injection to remedy the negative equity position and potential decline in debt level due to repayment.
Global Accelerex remains a niche player within the broader Nigerian financial services industry. In recent years, the evolving operating environment and current business model have constrained revenue generation and overall competitive positioning, analysts explained in the rating note.
In response, Global Accelerex plans to pivot from bank-led Payment Terminal Service Provider (PTSP) acquiring relationship to co-acquire/directly acquire top merchants in critical segments to drive transaction income, while also leveraging on it subsisting partnership with banks (Nigeria and East Africa) to drive growth.
The change in strategy is expected to be credit positive given the current market dynamics; however, the benefits may only accrue post the outlook period (12 to 18 months) due to intense competition within the space.
The N2.275 billion Series 1 Bond (the Series 1 Bonds) was issued in June 2022, under Accelerex SPV Plc’s (the Issuer) NNG20 billion Debt Issuance Programme.
The Issuer is a special purpose vehicle owned and sponsored by Global Accelerex Limited, the Sponsor, as a funding entity, solely for the purpose of raising finance.
The Series 1 Bonds constitute senior, direct, unconditional, and unsecured obligations of the Issuer and rank pari passu without any preference or priority among themselves.
Given that Global Accelerex offers timely and full coverage of all payments due to the bondholders under the Series 1 Bonds through the Deed of Covenant, the Series 1 Bonds bear the same credit risk as its Sponsor and would reflect similar recovery prospects to senior unsecured creditors in the event of a default.
As a result, the long-term rating for the Series 1 Bonds is equalised with Global Accelerex’s national scale long term issuer rating of BB-(NG).
The performance reports received from the Bond Trustees in October 2025 indicated that there has been no breach of covenants.
However, GCR analysts noted weak oversight by the Bond Trustees and the failure to enforce the funding of the sinking fund accounts by Global Accelerex as stipulated by the Series 1 Trust Deed.
“The Negative outlook is premised on our expectation that the company could face significant liquidity pressure over the outlook period if earnings continue to underperform, and if fresh capital is not injected. The weak capital structure could also limit funding options and access if sustained”, GCR said.
