Consumer Renewables

CFBANQUE Investment confirms the AAA rating assigned to Consumer Renewables (RES1681.NR), an operator in the Consumer Goods sector based in Kenya. 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 35.5% which sits at the upper end of the sector range and evidences robust pricing power and exhibits a contained net leverage of 0.71x EBITDA, providing comfortable headroom to absorb capital expenditure and debt servicing. With revenues of $8.72B and a market capitalisation of $17.04B, Consumer Renewables commands a significant economic footprint within its domestic market.

Our proprietary models assign a Debt Capacity score of 834/1000, an Investment score of 713/1000 and an ESG & Governance score of 770/1000, reflecting a solid debt coverage, an attractive investment potential and governance standards aligned with best market practice.

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.