First Real Renewables

CFBANQUE Investment confirms the A rating assigned to First Real Renewables (TRU2188.LZ), an operator in the Real Estate sector based in Zambia. 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 27.9% in line with sector standards, reflecting adequate operational discipline and exhibits an elevated net leverage of 3.82x EBITDA, which reduces financial flexibility in the event of a cyclical downturn. With revenues of $8.82B and a market capitalisation of $1.72B, First Real Renewables commands an established economic footprint within its domestic market.

Our proprietary models assign a Debt Capacity score of 437/1000, an Investment score of 524/1000 and an ESG & Governance score of 640/1000, reflecting a debt coverage that requires close monitoring, a measured investment potential and ESG standards on a continuous improvement trajectory.

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.