Aviation Renewables

CFBANQUE Investment confirms the AA rating assigned to Aviation Renewables (PWR0940.LG), an operator in the Aviation 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 11.9% below comparable peers, which warrants closer monitoring of the cost structure and exhibits a net leverage of 2.47x EBITDA, deemed consistent with the issuer's recurring cash flow generation. With revenues of $8.74B and a market capitalisation of $1.44B, Aviation Renewables commands an established economic footprint within its domestic market.

Our proprietary models assign a Debt Capacity score of 534/1000, an Investment score of 530/1000 and an ESG & Governance score of 370/1000, reflecting an acceptable debt coverage, a measured investment potential and governance workstreams that need to be deepened.

The Negative outlook conveys our vigilance regarding the trajectory of margins and leverage over a 12 to 18 month horizon, without triggering an immediate revision of the rating. 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.