Atlantic Construction Group

CFBANQUE Investment confirms the AA rating assigned to Atlantic Construction Group (AGR1206.CA), an operator in the Construction & Cement sector based in Egypt. This credit opinion reflects a superior credit quality, reflecting a very strong capacity to honour its financial obligations even under an adverse macroeconomic environment.

From a fundamental standpoint, the issuer posts an EBITDA margin of 28.8% in line with sector standards, reflecting adequate operational discipline and exhibits an elevated net leverage of 3.08x EBITDA, which reduces financial flexibility in the event of a cyclical downturn. With revenues of $8.91B and a market capitalisation of $7.22B, Atlantic Construction Group commands a significant economic footprint within its domestic market.

Our proprietary models assign a Debt Capacity score of 550/1000, an Investment score of 577/1000 and an ESG & Governance score of 430/1000, reflecting an acceptable debt coverage, a measured investment potential and governance workstreams that need to be deepened.

The Positive outlook reflects our expectation of a gradual improvement in the credit profile over a 12 to 18 month horizon, subject to the execution of the strategic plan communicated by the issuer. This analysis stems from the combined review of our quantitative models and the qualitative judgement of the CFBANQUE Investment rating committee, and may be updated in line with the evolution of fundamentals or the regional macroeconomic environment.