East African Breweries Limited (EABL) #ticker:EABL has breached the terms attached to a Sh11 billion corporate bond, prompting the Nairobi Securities Exchange-listed firm to get a waiver of the conditions from the Capital Markets Authority (CMA).
The brewer is required to maintain a current ratio — a measure of a company’s ability to meet its short term obligations — of at least 1. This means that its current assets including cash balances should at least match short term liabilities such as bank overdrafts and supplier debt.
