RE:RE:Desjardins : a recent discussion with Martel and Al.I think this needs to be noted as well. I had done my math a while back with projections on this very topic and I got the same 1.4 to 1.6 times Net Debt/TTM EBITDA. Similar to Desjardins. I rechecked the math, because I just wanted to be on the safe side, and I came with exactly the same number again the second time.
Ending 3Q with an adjusted net debt/TTM EBITDA of 4.1x and pro forma liquidity of ~US$1.3b, we see leverage falling below 4x by the end of 2023. We believe this should attract incremental institutional interest as those investors often use 4.0x leverage as a threshold. We reiterate that BBD’s guidance of 2.0–2.5x by 2025 is likely on the conservative side— we calculate 1.6x in 2025, which should drive an investment-grade rating and incremental upside from interest rate savings.