Zimbabwe Real Steel

CFBANQUE Investment confirms the A rating assigned to Zimbabwe Real Steel (PWR2287.ZW), an operator in the Real Estate sector based in Zimbabwe. This credit opinion reflects an investment-grade credit profile, with a satisfactory capacity to service its debt and absorb moderate sectoral shocks.

From a fundamental standpoint, the issuer posts an EBITDA margin of 44.2% which sits at the upper end of the sector range and evidences robust pricing power and exhibits a contained net leverage of 0.80x EBITDA, providing comfortable headroom to absorb capital expenditure and debt servicing. With revenues of $23M and a market capitalisation of $17.96B, Zimbabwe Real Steel commands a significant economic footprint within its domestic market.

Our proprietary models assign a Debt Capacity score of 776/1000, an Investment score of 474/1000 and an ESG & Governance score of 650/1000, reflecting a solid debt coverage, a limited investment potential at this stage 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.