Rubber: Wara maintains investment rating of the Ivorian … – Jeune Afrique

 Despite the decline in sales in 2015, the West Africa Rating Agency Agency (WARA) maintained a rating of “BBB” the Ivorian producer of natural rubber, mainly because of “its dominant market position and its control of the value chain in the sector. ”

In a statement released Tuesday, June 7, the agency of west African notation WARA confirmed the ratings of the African Society of rubber plantations (PATH), a corporate Ivorian agro-industrial group Sifca.

PATH maintains its long-term rating “BBB” (which falls into the category of investment called notes) and the short-term “w-4″, with a stable outlook. Through its investment rating, PATH can issue loans without guarantors to the Regional Stock Exchange (BRVM), where it is listed since 1994.

PATH is a subsidiary to 68% of the Company international rubber plantations (SIPH), listed in Paris and held herself to 55.6% by Sifca.

negative impact of the decline in rubber prices

for the rating agency founded by the Senegalese entrepreneur Seydina Tandian, note PATH reflects “the negative impact of the sharp drop in natural rubber prices on the PATH profitability.”

the revenue of the company has fallen significantly in recent years, from 173 billion CFA francs (263.73 million euros) in 2012 to 155,620,000,000 CFA francs in 2013 and to 99.61 billion in 2014 and 97.45 billion in 2015.

Over the same period, PATH has gone from a net profit of 21 billion CFA francs in 2012 to a loss of -1.78 billion CFA francs last year.

for the assets of PATH, WARA registered dominance of the Ivorian producer (36% of market share) and its control of the value chain in the natural rubber sector. The rating agency also highlights the strong relationship with its strategic shareholder SAPH Michelin (9.98%) with SIPH Sifca and holding companies.

Outlook

Among the factors that could lead to an increase of the note of the Ivorian company listed according WARA, a sustainable rise in natural rubber prices and the completion of the oil palm plantation project, “it which would allow the company to begin a crucial stage of its diversification. “

however, a new policy or health crisis in Ivory Coast, the loss of market share and the emergence of new diseases affecting rubber of productivity could lead the agency to revise its rating down.

PATH produces over 99,000 tons of rubber machined per year and employs 6,000 people.