Bloomfield Investment Corporation has confirmed the long-term BBB + rating with a stable outlook previously awarded to Société Africaine de Crédit Automobile (SAFCA), officials of the Abidjan-based rating agency announced.
Bloomfield also confirmed the short term A1 rating with a stable outlook.
The rating is valid from September 2021 to August 2022.
To justify the rating and the outlook attached to it, Bloomfield officials note that over the long term, the protective factors are appropriate and considered sufficient for prudent investments. “However, they argue, there is considerable variability in risks over business cycles.”
In the short term, it is the certainty of timely repayment described as “very high” that is advanced by Bloomfield. According to the rating agency, the liquidity factors are excellent and supported by good protection factors of the essential elements. As for the risk factors, they are considered minor.
SIFCA’s rating is based on a number of positive factors. This is a satisfactory level of execution of the 2019-2021 strategic plan at the end of 2020, a governance framework in continuous improvement since 2018, a quality of the portfolio that is maintained in 2020, thanks to efficiency the credit risk management system, an increase in the interest margin despite the restrictive context, an effective refinancing strategy favorable to the development of activities and a planned expansion of activities, within the framework of the 2021-2025 development plan, which bodes well for the establishment.
On the other hand, Bloomfield has identified a few main factors of rating fragility. This is the case with credit activity disrupted by the Coronavirus health crisis, overall performance impacted by tax risk incidents and maturity extensions and a security risk still present in the areas of implantation.
SAFCA, whose trade name is Alios Finance Côte d’Ivoire, is a public limited company incorporated under Ivorian law with a Board of Directors which was created in 1956. It specializes in investment financing and rental financing. It has three branches located in Burkina Faso, Mali and Senegal.
Its share capital of 3,247,900,000 FCFA is 51.88% owned by Alios Finance SA.
