Ascend Telecommunications Bank

CFBANQUE Investment confirms the A rating assigned to Ascend Telecommunications Bank (GRP2504.DZ), an operator in the Telecommunications 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 33.9% which sits at the upper end of the sector range and evidences robust pricing power and exhibits a contained net leverage of 0.81x EBITDA, providing comfortable headroom to absorb capital expenditure and debt servicing. With revenues of $8.80B and a market capitalisation of $42M, Ascend Telecommunications Bank commands a focused economic footprint within its domestic market.

Our proprietary models assign a Debt Capacity score of 733/1000, an Investment score of 567/1000 and an ESG & Governance score of 860/1000, reflecting a solid debt coverage, a measured investment potential and governance standards aligned with best market practice.

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.