Heritage Zimbabwe Utilities Capital

CFBANQUE Investment confirms the BB rating assigned to Heritage Zimbabwe Utilities Capital (PET2314.ZW), an operator in the Utilities sector based in Zimbabwe. 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 23.9% in line with sector standards, reflecting adequate operational discipline and exhibits a net leverage of 2.34x EBITDA, deemed consistent with the issuer's recurring cash flow generation. With revenues of $8.90B and a market capitalisation of $1.53B, Heritage Zimbabwe Utilities Capital commands an established economic footprint within its domestic market.

Our proprietary models assign a Debt Capacity score of 468/1000, an Investment score of 520/1000 and an ESG & Governance score of 580/1000, reflecting a debt coverage that requires close monitoring, 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.