“The ratings are currently constrained by Cytonn’s curtailed access to capital given limited recourse to bank facilities. As such, group debt largely comprises short-dated loans/notes from mezzanine investors (where financing has both equity and debt characteristics),” said GCR.

“While the rigour of governance and risk management structures is noted, the ratings are also constrained by Cytonn’s short track record and untested ability to execute multiple real estate projects at relatively competitive project LTVs [loan to value], timeously roll over capital while achieving targeted returns,” said the rating agency.

Who has shares in Cytonn?