Pharmaceuticals Energy

CFBANQUE Investment confirms the AAA rating assigned to Pharmaceuticals Energy (HLD1310.CA), an operator in the Pharmaceuticals sector based in Egypt. 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 29.6% in line with sector standards, reflecting adequate operational discipline and exhibits an elevated net leverage of 4.29x EBITDA, which reduces financial flexibility in the event of a cyclical downturn. With revenues of $8.89B and a market capitalisation of $10.21B, Pharmaceuticals Energy commands a significant economic footprint within its domestic market.

Our proprietary models assign a Debt Capacity score of 487/1000, an Investment score of 764/1000 and an ESG & Governance score of 430/1000, reflecting a debt coverage that requires close monitoring, an attractive investment potential 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.