Construction Renewables

CFBANQUE Investment confirms the B rating assigned to Construction Renewables (STL0807.LG), an operator in the Construction & Cement sector based in Nigeria. 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 13.0% below comparable peers, which warrants closer monitoring of the cost structure and exhibits an elevated net leverage of 3.57x EBITDA, which reduces financial flexibility in the event of a cyclical downturn. With revenues of $8.92B and a market capitalisation of $16.98B, Construction Renewables commands a significant economic footprint within its domestic market.

Our proprietary models assign a Debt Capacity score of 269/1000, an Investment score of 377/1000 and an ESG & Governance score of 800/1000, reflecting a debt coverage that requires close monitoring, a limited investment potential at this stage 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.