Rating Release

 Agusto & Co. upgrades Lafarge Africa Plc’s rating to an “A-” and attaches a stable outlook to the Company.

This rating expires 30 June 2021.

The upgrade reflects our opinion on the Company’s improved financial condition in the period under review, evidenced by its return to profitability, satisfactory cash flow, adequate working capital, significant improvement in leverage, qualified and experienced management team. The assigned rating also reflects Lafarge’s good market position in the domestic cement industry, diversified and innovative product portfolio, wide distribution network, strong support from its parent company – LafargeHolcim Group, good liquidity profile and ability to raise funds from the capital market. Agusto & Co.’s rating also positively considers the Company’s divestment from its South African operations which led to an improvement in its capital structure and credit metrics. We note factors constraining the rating relate to the financing mismatch, low consumer spending exacerbated by the adverse impact of coronavirus pandemic which has also weakened demand for cement in key off-taker markets.

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.