Rating Release

Agusto & Co. upgrades the rating assigned to Lafarge Africa Plc to “Aa-” with a stable outlook

The rating expires on 30-06-23

Agusto & Co. upgrades the rating assigned to Lafarge Africa Plc (“Lafarge”, “LAP” or “the Company”) to “Aa-” to reflect the Company’s low leverage buttressed by the positive impact of the Company’s deleveraging efforts, good cash flow on account of the favourable terms of trade with customers and suppliers, adequate working capital upheld by a good financing mix, a stable, qualified and experienced management team as well as strong parental support from Holcim Group (the World’s largest producer of Cement). The rating is further underpinned by the Company’s position as a key player in the Cement Industry as well as the sustained growth in volume and sales of the Industry due to the rise in commercial and residential projects to address the increasing housing and infrastructural deficits in Nigeria. Nonetheless, the rating is tempered by profitability that requires improvement coupled with the frail macroeconomic environment, evidenced by the rising inflation, exacerbated by the devaluation of the local currency.

Lafarge Africa Plc is a member of the Holcim Group (‘HCG’, ‘the Group’ or ‘Holcim’) – the world’s largest producer of building materials including cement, aggregates, ready-mix concrete and asphalt amongst others. HCG has a diversified product portfolio and provides building solutions to a large customer base. The Group has the largest footprint in the global cement industry, with an installed capacity of 386.5 metric tons across 80 countries. Holcim group is rated “Bbb+” by Standard and Poors and Baa1 by Moody’s with a stable outlook.

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.