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 Soechi Lines as “Very High Risk” on the LARA scale. This reflects the risks associated with: [1] its shipyard business, with reported delays in deliveries, low visibility of new contracts and weak cash flow; and [2] high capex for acquiring new vessels. Soechi’s FCF generation is poor. Moreover, there are event risks associated with vessel accidents and a breakdown in its relationship with Pertamina. Positively, Soechi is the largest independent vessel owner/operator in Indonesia, behind the SOE Pertamina (rated Baa2/BBB). Pertamina is Soechi’s largest customer and accounts for c. 70% of its revenues. This customer concentration risk is somewhat mitigated by their four-decade-long symbiotic relationship. The shipping business is mainly conducted through long-term time charters, which provides some stability and visibility in terms of cash flow. Our Credit Bias on Soechi is “Negative”, owing to its weaker than expected operating performance and high leverage. We expect FCF generation to be minimal. Moreover, we deem management to have a poor track record of communication. We view Soechi’s corporate governance as “Weak” on the LAGA scale, mainly due to the: [1] family control (83% ownership) and family members (four brothers and two sisters) running the company; [2] ongoing related-party transactions; and [3] poor track record of investor communication and guidance.

  We view Soechi Lines as “Very High Risk” on the LARA scale. This reflects the risks associated with: [1] its shipyard business, with reported delays in deliveries, low visibility of new contracts and weak cash flow; and [2] high capex for acquiring new vessels. Soechi’s FCF generation is poor. Moreover, there are event risks associated with vessel accidents and a breakdown in its relationship with Pertamina.   Positively, Soechi is the largest independent vessel owner/operator in Indonesia, behind the SOE Pertamina (rated Baa2/BBB). Pertamina is Soechi’s largest customer and accounts for c. 70% of its revenues. This customer concentration risk is somewhat mitigated by their four-decade-long symbiotic relationship. The shipping business is mainly conducted through long-term time charters, which provides some stability and visibility in terms of cash flow.   Our Credit Bias on Soechi is “Negative”, owing to its weaker than expected operating performance and high leverage. We expect FCF generation to be minimal. Moreover, we deem management to have a poor track record of communication.   We view Soechi’s corporate governance as “Weak” on the LAGA scale, mainly due to the: [1] family control (83% ownership) and family members (four brothers and two sisters) running the company; [2] ongoing related-party transactions; and [3] poor track record of investor communication and guidance. 

Soechi Lines - Tear Sheet - Lucror Analytics