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

Leonard Law, CFA

Senior Credit Analyst

Debt Capital Markets

We view Medco as “High Risk” on the LARA scale due to its small scale, high leverage and weak liquidity profile. This is balanced by a degree of income stability on the back of fixed price contracts for the majority of Medco’s natural gas sales. Our fundamental Credit Bias for Medco is "Stable”, as we expect the company’s investment appetite to remain elevated, offset by higher cash flows from production ramp-up in existing fields. We assess the group as “Moderate” on the LAGA scale. We like: (1) the company’s track record since listing in 1994; (2) separation of the President Director and CEO positions; and (3) lack of significant related party transactions. However, only two out of five commissioners are independent. We see fair value for the proposed MEDCIJ ‘22s at 8.0-8.5%

We view Medco as “High Risk” on the LARA scale due to its small scale, high leverage and weak liquidity profile. This is balanced by a degree of income stability on the back of fixed price contracts for the majority of Medco’s natural gas sales.  Our fundamental Credit Bias for Medco is "Stable”, as we expect the company’s investment appetite to remain elevated, offset by higher cash flows from production ramp-up in existing fields.  We assess the group as “Moderate” on the LAGA scale. We like: (1) the company’s track record since listing in 1994; (2) separation of the President Director and CEO positions; and (3) lack of significant related party transactions. However, only two out of five commissioners are independent.  We see fair value for the proposed MEDCIJ ‘22s at 8.0-8.5% 

Medco Energi - New Issue Assessment - Lucror Analytics