RE: We know its good news..26 Aug 2020 11:33
Yes that was RAEX . They downgraded end of may due to zen leaving azer.
Interesting in their note they don't have Congo as the main moneymaker but this african purchase we haven't been told about yet?
"As mentioned previously, we keep our current Country and Industry Risk (CIR) score
unchanged, as this is based on the latest reported operations of the company. However,
we do expect radical changes to materialize soon, which would change the structure of the
geographic locations of Zenith’s operations. Besides from the AAOGC deal, which was
recently completed, if the rest of the announced acquisitions do materialize in full, the
company is forecasting to have revenue proceeds as follows by March 2021: 52% in a new
incoming acquisition in Africa, 20% in Congo, 17% in Italy and 11% in Tunisia. Taking
these shares into account, and in a conservative scenario (a higher share of revenues in
riskier countries), we estimate the corporate industry risk for the rated company to be
from “adequate” to “moderately high”
3. The target countries are all rated below ‘B-‘ or
equivalent and are characterized by low levels of government effectiveness, political
stability and regulatory quality4, factors which increase the overall systematic risk for the
company. On the other hand, if these deals were to materialize, the company would also
benefit from the diversification effect;"