Rating Release
Agusto & Co hereby upgrades the rating assigned to BB Landmark Realty Limited
The rating expires on 30 June 2024.
Agusto & Co hereby upgrades the rating assigned to BB Landmark Realty Limited (“BBL” or “the Company”) to “Bbb+”. The rating reflects notable improvement in the Company’s earnings and cash flows on the back of the sustained growth in both footfall and customer spending across its ecosystem post-lockdown. The rating also considers BBL’s scalable business model and well-diversified income sources that have helped to build some resilience against worsening economic headwinds. This is in addition to the Company’s expanding recreational facilities and the expected boom in domestic tourist visits, especially as the county’s weak currency and lingering foreign exchange liquidity challenges continue to discourage international tourism. The rating is however constrained by BBL’s rising debt burden relating to the outstanding foreign currency exposure to its Mauritius-based ultimate parent company, which it plans to liquidate using proceeds from its proposed $50 million equity fundraising. If successful, we believe that this debt ro equity restructuring presents a significant upside scenario for the Company.
The opinions expressed in this rating release do not represent investment or other advice and should therefore not be construed as such. Visit www.agusto.com for further information.
