Algeria Food Cement

CFBANQUE Investment confirms the A rating assigned to Algeria Food Cement (ENR2520.DZ), an operator in the Food & Beverage sector based in Algeria. 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 36.0% which sits at the upper end of the sector range and evidences robust pricing power and exhibits a net leverage of 2.57x EBITDA, deemed consistent with the issuer's recurring cash flow generation. With revenues of $5.26B and a market capitalisation of $17.99B, Algeria Food Cement commands a significant economic footprint within its domestic market.

Our proprietary models assign a Debt Capacity score of 583/1000, an Investment score of 497/1000 and an ESG & Governance score of 660/1000, reflecting an acceptable debt coverage, a limited investment potential at this stage and ESG standards on a continuous improvement trajectory.

The Negative outlook conveys our vigilance regarding the trajectory of margins and leverage over a 12 to 18 month horizon, without triggering an immediate revision of the rating. 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.