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

Credit

We view Sawit Sumbermas Sarana (SSMS) as “High Risk” on the LARA scale. This reflects the risks associated with its: [1] small scale, with geographically concentrated operations in a highly competitive and commoditised industry; [2] history of environmental, social and governance related infringements; [3] opaque corporate structure, with significant related party transactions; and [4] weakened financial profile, with higher debt and declining margins. That said, SSMS enjoys high margins relative to peers, due to high oil extraction rates and a young plantation maturity profile. Our fundamental Credit Bias on SSMS is “Negative” due to its weakened financial profile, with higher-than-expected debt levels. The company’s earnings have also been impacted by declining CPO prices. We view SSMS’ corporate governance as “Weak” on the LAGA scale. This is on account of it being effectively controlled by Abdul Rasyid, its loans to the parent entity, the poor environmental record, and its opaque corporate structure. In particular, we view the continuation of related party loans as a major negative, and do not believe that minority shareholders or creditors derive any benefit from the loans to the holding company.   .

   We view Sawit Sumbermas Sarana (SSMS) as “High Risk” on the LARA scale. This reflects the risks associated with its: [1] small scale, with geographically concentrated operations in a highly competitive and commoditised industry; [2] history of environmental, social and governance related infringements; [3] opaque corporate structure, with significant related party transactions; and [4] weakened financial profile, with higher debt and declining margins. That said, SSMS enjoys high margins relative to peers, due to high oil extraction rates and a young plantation maturity profile.    Our fundamental Credit Bias on SSMS is “Negative” due to its weakened financial profile, with higher-than-expected debt levels. The company’s earnings have also been impacted by declining CPO prices.    We view SSMS’ corporate governance as “Weak” on the LAGA scale. This is on account of it being effectively controlled by Abdul Rasyid, its loans to the parent entity, the poor environmental record, and its opaque corporate structure. In particular, we view the continuation of related party loans as a major negative, and do not believe that minority shareholders or creditors derive any benefit from the loans to the holding company.   . 

Sawit Sumbermas - Tear Sheet - Lucror Analytics