Horizon South Africa Media Agro

CFBANQUE Investment confirms the AAA rating assigned to Horizon South Africa Media Agro (HLD0424.JO), an operator in the Media & Entertainment sector based in South Africa. 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 14.6% below comparable peers, which warrants closer monitoring of the cost structure and exhibits a net leverage of 1.68x EBITDA, deemed consistent with the issuer's recurring cash flow generation. With revenues of $8.90B and a market capitalisation of $14.47B, Horizon South Africa Media Agro commands a significant economic footprint within its domestic market.

Our proprietary models assign a Debt Capacity score of 660/1000, an Investment score of 550/1000 and an ESG & Governance score of 620/1000, reflecting an acceptable debt coverage, a measured investment potential and ESG standards on a continuous improvement trajectory.

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.