Brewing Telecom

CFBANQUE Investment confirms the B rating assigned to Brewing Telecom (INS1573.CS), an operator in the Brewing sector based in Morocco. This credit opinion reflects a speculative profile with heightened sensitivity to the economic cycle, refinancing conditions and input price volatility.

From a fundamental standpoint, the issuer posts an EBITDA margin of 14.0% below comparable peers, which warrants closer monitoring of the cost structure and exhibits an elevated net leverage of 3.08x EBITDA, which reduces financial flexibility in the event of a cyclical downturn. With revenues of $8.72B and a market capitalisation of $5.68B, Brewing Telecom commands a significant economic footprint within its domestic market.

Our proprietary models assign a Debt Capacity score of 317/1000, an Investment score of 185/1000 and an ESG & Governance score of 370/1000, reflecting a debt coverage that requires close monitoring, a limited investment potential at this stage 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.