CariCRIS reaffirms ‘high creditworthiness’ ratings for Guardian Holdings Limited (GHL)
Month: September 2023
Guardian Holdings Limited
Poly Pet Company Limited
RATING ACTION:
On August 17, 2023, CariCRIS downgraded the credit rating assigned to the J $1 billion bond debt issue of Poly Pet Company Limited (Poly Pet or the Company) to jmBB- (Local Currency Rating) on the Jamaica national scale. A stable outlook was assigned.
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
- Improvement of the sovereign risk profile of Jamaica
- Improvement in the Company’s DSCR to over 1 time sustained for more than 2 financial years (based on data from audited accounts)
- Improvement in Poly Pet’s debt to net shareholder’s equity ratio to below 2 times sustained for 2 financial periods (based on data for audited accounts)
- Sustained compliance with bond financial covenants for more than 2 financial periods (based on audited accounts)
Factors that could, individually or collectively, lead to a lowering of the ratings and/ or Outlook include:
- A greater than 10% decline in operating revenue
- A net increase in intercompany balances by 5% over the next 12 months
- Continued breach of covenants stipulated in the final term sheet/prospectus for the bond offering
- Inability to raise capital given the likelihood that the bond’s principal at maturity would need to be refinanced in 2025
- Changes in environmental laws and regulations towards reducing plastic use in Jamaica
- Deterioration in the sovereign risk profile of Jamaica
- Material deviation of Poly Pet’s audited financial accounts for June 2022 from management accounts presented, resulting in lower profitability and cash flow adequacy metrics
Analysts’ Contact Info:
Keith Hamlet
Mobile : 1-868-487-8356
Maxwell Gooding
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.
Poly Pet Company Limited
CariCRIS downgrades its credit rating for Poly Pet Company Limited
ANSA Merchant Bank Limited (AMBL Group)
RATING ACTION:
On August 11, 2023, CariCRIS reaffirmed the issuer/corporate credit ratings of CariAA (Foreign and Local Currency Ratings) on the regional rating scale, and ttAA on the Trinidad and Tobago (T&T) national scale for ANSA Merchant Bank Limited (AMBL Group). 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:
- Improvement in the credit rating of the Government of Trinidad and Tobago
- Successful acquisitions over the next 12 to 15 months with a concomitant material improvement in any of its main segments’ market share and AMBL Group’s overall financial performance
- Material improvement in the financial performance and position of ANSA McAL Limited
Factors that could, individually or collectively, lead to a lowering of the ratings/or outlook include:
- Another sustained year of losses
- A more than 30% increase in total operating expenses leading to a combined ratio in excess of 180% over the next year
- Downgrade in the rating of the Government of Trinidad and Tobago
- Material deterioration in the financial performance and position of ANSA McAL Limited
Analysts’ Contact Info:
Anelia Oudit
Mobile : 1-868-487-8364
Jeffrey James
ANSA Merchant Bank Limited (AMBL Group)
CariCRIS reaffirms ‘high’ creditworthiness ratings for ANSA Merchant Bank Limited (AMBL Group)