RATING ACTION:

On June 15, 2023, CariCRIS reaffirmed the assigned ratings of CariA- (Foreign and Local Currency Ratings) on the regional rating scale, and ttA- on the Trinidad and Tobago (T&T) national scale for The Beacon Insurance Company Limited. 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 the market share of general insurance products in its largest market, T&T to 10% or more.
• Enhancement of Beacon’s risk management through the complete rollout of an enterprise risk management system.
• An improvement in the overall credit profile for Beacon’s fixed income portfolio where more than 60% of the portfolio is rated investment grade on the S&P rating scale.
• Increased profitability leading to an improvement in ROA and ROE to above 2.5% and 10% respectively for the next financial year.

Factors that could, individually or collectively, lead to a lowering of the ratings/or outlook include:

• A 2-notch deterioration of the credit rating of Beacon’s top reinsurer.
• A deterioration of the company’s capital adequacy ratio to 150% or lower on a sustained basis for at least 6 months.
• Loss of relationship with any of the Company’s major reinsurers and failure to provide viable replacements.
• A second consecutive year of the Company reported a loss after tax.

Analysts’ Contact Info:

Keith Hamlet

Mobile : 1-868-487-4356

khamlet@caricris.com   

Sultan Mohammed

Mobile : 1-1868-362-7304

smohammed@caricris.com   

www.caricris.com 

info@caricris.com

Disclaimer: CariCRIS has taken due care and caution in the compilation of data for this product. Information has been obtained by CariCRIS from sources which it considers reliable.  However, CariCRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.  No part of this report may be published /reproduced in any form without CariCRIS’ prior written approval.  CariCRIS is also not responsible for any errors in transmission and especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of this product

CariCRIS reaffirms ‘good creditworthiness’ ratings for The Beacon Insurance Limited

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RATING ACTION:

On March 20, 2023, CariCRIS assigned initial ratings  of CariAA- (Foreign and Local  Currency Ratings) on the regional rating scale and gyAAA on the Guyana national scale (Foreign and Local Currency Rating) to the proposed debt facilities of up to US $33.7 million of Guyana Shore Base Incorporated (GYSBI). 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:

• Successful operations of GYSBI over the next 2 years, leading to PAT improving by 15% or more annually.
• A reduction in client concentration risk where a single client will not account for more than 50% of the Company’s revenue, sustained for 2 financial years.
• An improvement in the sovereign risk profile of the Government of Guyana.

Factors that could, individually or collectively, lead to a lowering of the ratings/or outlook include:

• Breach of any of the debt covenants
• Failure to satisfy any of the performance requirements of the contractual agreement with EEPGL.
• A material reduction in GYSBI’s labor and plant efficiency metrics, which would lead to an increase in GYSBI’s operating expenses.
• Failure of GYSBI to meet EEPGL’s KPIs stipulated in the 11-year contract.
• A reduction in services provided to EEPGL leading to revenue declines of more than 15% for 2 consecutive years.
• An increase in debt leading to increased leverage of above 3.5 times sustained for 2 financial periods.
• An increase in debt servicing requirements, leading to a decrease in effective DSCR to below 1.25 times sustained for 2 financial years.
• A reduction in services provided to EEPGL leading to revenue declines of more than 15% for 2 consecutive years.

Analysts’ Contact Info:

Keith Hamlet

Mobile : 1-868-487-4356

khamlet@caricris.com   

Sultan Mohammed

Mobile : 1-1868-362-7304

smohammed@caricris.com   

www.caricris.com   

info@caricris.com

CariCRIS assigns ‘high’ creditworthiness ratings to the proposed debt facilities of up to US $33.7 million of Guyana Shore Base Incorporated (GYSBI).

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RATING ACTION:

On June 29, 2023, CariCRIS reaffirmed the ratings currently assigned to the TT $4 billion bond issue (Series A, B and C) of The National Investment Fund Holding Company Limited (NIF) of CariAA (Local Currency Rating) on the regional rating scale and ttAA (Local Currency Rating) on the Trinidad and Tobago (T&T) national scale. CariCRIS also assigned the rating to the proposed bond issue of up to TT $1.2 billion of the NIF of CariAA (Local Currency Rating) on the regional rating scale and ttAA (Local Currency Rating) on the Trinidad and Tobago (T&T) national scale. A stable outlook was assigned and maintained on both ratings.

RATING SENSITIVITY FACTORS:

Factors that could, individually or collectively, lead to an improvement in the ratings and /or outlook include:

• Improvement in the credit risk profile of the GORTT
• Improvement in the credit risk profiles of TGU and RFHL

Factors that could, individually or collectively, lead to a lowering of the ratings/or outlook include:

• A deterioration in the credit risk profile of the GORTT over the next 12 months
• A deterioration in the cash flow adequacy ratio to less than 1 time
• A deterioration in the credit risk profiles of TGU and RFHL
• Breach of any covenants of the bond
• Failure to fully repay or successfully refinance Series A when it becomes due in August 2023

Analysts’ Contact Info:

Keith Hamlet

Mobile: 1-868-487-8356

khamlet@caricris.com       

Sharlene Gordon

Phone :1-876-618-9811

sgordon@caricris.com

www.caricris.com 

info@caricris.com  

Disclaimer: CariCRIS has taken due care and caution in compilation of data for this product. Information has been obtained by CariCRIS from sources which it considers reliable.  However, CariCRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.  No part of this report may be published / reproduced in any form without CariCRIS’ prior written approval.  CariCRIS is also not responsible for any errors in transmission and especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of this product.