CariCRIS reaffirms overall ‘high’ creditworthiness’ ratings to the US $40 million bond issue of PBS Technologies (Trinidad) Limited (PBSTTL)
Month: June 2022
PBS Technologies (Trinidad) Limited
PBS Technologies (Trinidad) Limited
RATING ACTION:
On June 15, 2022, CariCRIS reaffirmed the assigned Bond Issue Credit ratings of CariA- (Foreign Currency Rating) and CariA (Local Currency Rating) on the regional scale and jmAA+ (Local Currency Rating) and jmAA (Foreign Currency Rating) on the Jamaica national scale to the US $40 million bond debt issue of PBS Technologies (Trinidad) Limited (PBSTTL or the Company). A stable outlook was maintained.
RATING SENSITIVITY FACTORS:
Factors that could, individually or collectively, lead to an improvement of the ratings and/ or Outlook include:
- An increase in PAT of above 10% for 2 consecutive years
- An improvement in the sovereign risk profiles of the countries that the Company operates in
Factors that could, individually or collectively, lead to a lowering of the ratings and/ or Outlook include:
- A greater than 4% decline in operating revenue for 2 consecutive years
- A decline in interest cover to below 2 times
- A deterioration in the Company’s debt/ TNW ratio to more than 3.5 times
- A breach of any of the financial covenants associated with the US $40 million Bond
- Material deviation of PBSTTL’s audited financial accounts for 2021 from management accounts presented, resulting in lower profitability and cash flow adequacy metrics
- Unfavourable capital market conditions that could hinder access to new capital given the likelihood that the US $40 million bond would have to be refinanced in 2026
- A deterioration in the sovereign risk profiles of the countries that the Company operates in
Analysts’ Contact Info:
Keith Hamlet
Mobile : 1-868-487-8356
Maxwell Gooding
Sagicor Financial Company Limited
RATING ACTION:
On June 15, 2022, CariCRIS reaffirmed the assigned credit ratings of CariAA (Foreign and Local Currency Ratings) and jmAAA (Foreign and Local Currency Ratings) on the Jamaica national scale to the debt issue of up to US $76 million of Sagicor Financial Company Limited (SFC or the Company). A stable outlook was maintained.
RATING SENSITIVITY FACTORS:
Factors that could, individually or collectively, lead to an improvement in the ratings and /or outlook include:
- Substantial improvement in the market position and financial performance and profitability of Sagicor USA
- An improvement in the creditworthiness of Jamaica where SFC derives more than 25% of its revenue and 64.4% of its profits
Factors that could, individually or collectively, lead to a lowering of the ratings/or outlook include:
- A significant change in capitalization, especially on account of future acquisitions resulting in the MCCSR falling to 175% or lower
- A reduction in the creditworthiness of Jamaica where SFC derives more than 25% of its revenue and 64.4% of its profits
- Substantial deterioration in consolidated financial performance, with a greater than 30% fall in premium income
- Decrease in Interest Coverage to <1.5X
Analysts’ Contact Info:
Anelia Oudit
Mobile : 1-868-487-8364
Nadia Sanchez
Seprod Limited
CariCRIS reaffirms ‘good creditworthiness’ ratings for Seprod Limited
Seprod Limited
RATING ACTION:
On June 15, 2022, CariCRIS reaffirmed the assigned ratings of CariA- (Local Currency Rating) on the regional rating scale, and jmAA- (Local Currency Rating) and jmA+ (Foreign Currency Rating) on the Jamaica national scale of Seprod Limited (Seprod or the Group). The stable outlook was maintained.
RATING SENSITIVITY FACTORS:
Factors that could, individually or collectively, lead to an improvement of the rating and/or outlook:
- An improvement in the GOJ’s credit rating over the next 12-15 months
- Sustained improvement in Group PAT by over 15% or more annually for the next 2 years
- An improvement in interest cover and effective DSCR to above 4 times and 1.5 times respectively for the next 2 years
Factors that could, individually or collectively, lead to a lowering of the rating and/or outlook:
- A deterioration in the GOJ’s credit rating over the next 12-15 months
- A fall in the Group’s interest cover and effective DSCR to below 2.5 times and 1.5 times respectively, sustained for 2 years
Analysts’ Contact Info:
Anelia Oudit
Mobile : 1-868-487-8364
Kyla Balwant
JMMB International Limited (JMMBIL)
RATING ACTION:
On March 25, 2022, CariCRIS assigned initial credit rating of jmA (Foreign Currency Rating) on the Jamaica national scale to the up to US $160 million bond issue of JMMB International Limited. A stable outlook was assigned.
RATING SENSITIVITY FACTORS:
Factors that could, individually or collectively, lead to an improvement in the ratings and/ or Outlook include:
- An improvement in the GOJ’s credit rating over the next 12-15 months
- An improvement in the credit rating of JMMBIL’s ultimate parent JMMB Group Limited
Factors that could, individually or collectively, lead to a lowering of the ratings/or outlook include:
- A deterioration in the GOJ’s credit rating over the next 12-15 months
- A lowering of the ratings of JMMBIL’s ultimate parent JMMB Group Limited
- Breach of any of the bond covenants including a deterioration below the capital regulatory requirements of any of the operating subsidiaries in their respective jurisdictions
- Failure of JMMBGL to fulfil its role as guarantor if called upon to do so
Analysts’ Contact Info
Keith Hamlet
Mobile: 1-868-487-8356
Khadine Tavares
JMMB International Limited (JMMBIL)
CariCRIS assigns overall ‘good creditworthiness’ ratings to bond issue of up to US $160 million of JMMB International Limited
JMMB International Limited (JMMBIL)
JMMB International Limited
Withdrawal of US $120 million Bond Issue Ratings
Caribbean Information & Credit Rating Services Limited (CariCRIS), the region’s credit rating agency, wishes to inform the public of the withdrawal of the US $120 million bond issue ratings and outlook for JMMB International Limited (JMMBIL or the Company), that were last reviewed and reported on by CariCRIS on June 16, 2021.
These ratings were withdrawn following CariCRIS’ receipt of notice from JMMBIL that the instrument was fully repaid. As a result, the rating associated with this instrument will no longer be kept under annual surveillance and as such there will be no further updates.
June 24, 2022
JMMB International Limited (JMMBIL)
Withdrawal of US $120 million Bond Issue Ratings
GraceKennedy Limited
RATING ACTION:
On June 15, 2022, CariCRIS reaffirmed the assigned issuer credit ratings of CariA- (Local Currency Rating) on the regional rating scale and jmAA (Local Currency Rating) on the Jamaica national scale to the bond issue of up to J $3 billion of GraceKennedy Limited (GKL or the Group). A stable outlook was maintained.
RATING SENSITIVITY FACTORS:
Factors that could, individually or collectively, lead to an improvement in the ratings and /or outlook include:
- An improvement in CariCRIS’ sovereign credit risk rating of Jamaica
Factors that could, individually or collectively, lead to a lowering of the ratings/or outlook include:
- Decline in DSCR ratio to <1.33 times or fall in effective DSCR to below 1.5x
- Interest in Debt to EBITDA to >4.0 times
- A lowering of CariCRIS’ sovereign credit risk rating of Jamaica
Analysts’ Contact Info:
Anelia Oudit
Mobile : 1-868-487-8364
Nadia Sanchez