Automotive Trust

CFBANQUE Investment confirms the AAA rating assigned to Automotive Trust (HLD0825.LG), an operator in the Automotive sector based in Nigeria. 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 33.1% which sits at the upper end of the sector range and evidences robust pricing power and exhibits an elevated net leverage of 3.25x EBITDA, which reduces financial flexibility in the event of a cyclical downturn. With revenues of $8.81B and a market capitalisation of $7.51B, Automotive Trust commands a significant economic footprint within its domestic market.

Our proprietary models assign a Debt Capacity score of 595/1000, an Investment score of 596/1000 and an ESG & Governance score of 680/1000, 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.