Horizon Zimbabwe Chemicals Holdings

CFBANQUE Investment confirms the CCC rating assigned to Horizon Zimbabwe Chemicals Holdings (PRP2294.ZW), an operator in the Chemicals sector based in Zimbabwe. This credit opinion reflects a fragile credit profile, marked by elevated vulnerability to any deterioration in market or liquidity conditions.

From a fundamental standpoint, the issuer posts an EBITDA margin of 16.1% in line with sector standards, reflecting adequate operational discipline and exhibits a contained net leverage of 1.40x EBITDA, providing comfortable headroom to absorb capital expenditure and debt servicing. With revenues of $8.87B and a market capitalisation of $5.93B, Horizon Zimbabwe Chemicals Holdings commands a significant economic footprint within its domestic market.

Our proprietary models assign a Debt Capacity score of 434/1000, an Investment score of 433/1000 and an ESG & Governance score of 430/1000, reflecting a debt coverage that requires close monitoring, a limited investment potential at this stage and governance workstreams that need to be deepened.

The Positive outlook reflects our expectation of a gradual improvement in the credit profile over a 12 to 18 month horizon, subject to the execution of the strategic plan communicated by the issuer. 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.