Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

High Yield Experts

Senior Credit Analyst, Lucror Analytics

Trung Nguyen

Senior Credit Analyst

Debt Capital Markets

Azure Power Global Ltd / Debt Capital Markets

We view Azure as “Medium Risk” on the LARA scale. We like the stable and predictable revenues and EBITDA, which are supported by: [1] a constant amount of solar radiation y-o-y; [2] fixed tariff based on long-term PPAs (25 years); and [3] minimal operating costs, as solar panels have no moving parts. However, the credit profile is weighed down by the company's high leverage, limited scale, and short track record. The key risk is that the PPAs could be cancelled or re-negotiated. Our Credit Bias is “Stable”, due to the stable and predictable revenues and EBITDA. We view Azure’s corporate governance as “Moderate” on the LAGA scale, mainly owing to the reputable and diversified institutional shareholder base, experienced Board directors, and public listing on the NYSE. The GKOLN '22s are yielding 4.9%/4.8%, while Continuum Energy’s proposed USD 385 mn 5NC3 Notes are guided at 6.375%. Thus, we see fair value for Azure’s proposed Notes at 5.75%.

We view Azure as “Medium Risk” on the LARA scale. We like the stable and predictable revenues and EBITDA, which are supported by: [1] a constant amount of solar radiation y-o-y; [2] fixed tariff based on long-term PPAs (25 years); and [3] minimal operating costs, as solar panels have no moving parts. However, the credit profile is weighed down by the company's high leverage, limited scale, and short track record. The key risk is that the PPAs could be cancelled or re-negotiated.  Our Credit Bias is “Stable”, due to the stable and predictable revenues and EBITDA.  We view Azure’s corporate governance as “Moderate” on the LAGA scale, mainly owing to the reputable and diversified institutional shareholder base, experienced Board directors, and public listing on the NYSE.  The GKOLN '22s are yielding 4.9%/4.8%, while Continuum Energy’s proposed USD 385 mn 5NC3 Notes are guided at 6.375%. Thus, we see fair value for Azure’s proposed Notes at 5.75%. 

Azure Power - New Issue Assessment - Lucror Analytics