The ratings on African Oxygen Limited reflect the strong funding profile, underpinned by robust cash generation despite sustained weakness in the South African operating climate. GCR’s view is further supported by Afrox’s strongly entrenched market position and advantages of its integration into ultimate parent Linde plc, counterbalanced by relatively low product diversification and limited geographic diversification.
Established in 1927 and listed on the JSE in 1963, Afrox is Southern Africa’s leading industrial gases, liquified petroleum gas (“LPG”) and welding products producer and supplier. With a direct presence in eight sub-Saharan countries, Afrox also manages various operations in five other African countries on behalf of its ultimate parent, Linde Plc (“Linde”). Afrox's competitive position is supported by enhanced efficiencies and a strong track record of reliability, which has enabled it to sustain sound baseline volumes despite sustained pressure on downstream markets