“The Group’s leverage increased during recent years, with net debt in the last three years increasing at a CAGR of 17.8%. This, combined with a lower EBITDA in FY19, when compared to FY17, resulted in the Group’s gearing to jump to 5.2x in FY19 (FY17: 3.4x).

Nonetheless, the Group’s coverage ratio remained healthy, with this standing at 4.0x in FY19. Despite the current stressed economic environment, the Group expects its coverage to fall to 3.4x this year, which we deem as healthy. Based on this, together with our opinion that the Issuer has sufficient resources at its disposal to honour all of its financial obligations, including its bond interest payment obligations, we are issuing a Positive credit opinion on MRN.

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