South Africa Brewing Corporation

CFBANQUE Investment confirms the BBB rating assigned to South Africa Brewing Corporation (CEM0144.JO), an operator in the Brewing sector based in South Africa. This credit opinion reflects an investment-grade credit profile, with a satisfactory capacity to service its debt and absorb moderate sectoral shocks.

From a fundamental standpoint, the issuer posts an EBITDA margin of 15.4% in line with sector standards, reflecting adequate operational discipline and exhibits a net leverage of 2.01x EBITDA, deemed consistent with the issuer's recurring cash flow generation. With revenues of $8.62B and a market capitalisation of $11.85B, South Africa Brewing Corporation commands a significant economic footprint within its domestic market.

Our proprietary models assign a Debt Capacity score of 505/1000, an Investment score of 483/1000 and an ESG & Governance score of 410/1000, reflecting an acceptable debt coverage, a limited investment potential at this stage and governance workstreams that need to be deepened.

The Stable outlook indicates that our committee does not anticipate, in its central scenario, a revision of the rating over a 12 to 18 month horizon. 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.