Government of Barbados

RATING ACTION:

On December 5, 2024, CariCRIS upgraded the sovereign/issuer credit ratings assigned to the Government of Barbados (GOB) by one-notch to CariBBB (Foreign and Local Currency) on its regional rating scale. 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:

A decrease in the total public sector debt to below 85% of GDP
A fiscal balance better than 3% of GDP over the next 12 months

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

Import cover below 12 weeks with no likely sources to increase reserves
Delays in the construction of tourism-related investment projects scheduled for completion in 2025
Derailment in any material way of the BERT 2022 plan

Analysts’ Contact Info:

Stefan Fortuné
Phone: 1-868-799-6751 (m)
sfortune@caricris.com

Carla Ash
Phone : 1-868-713-6794 (m)
cash@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.

Government of Barbados

CariCRIS upgrades by one-notch the credit ratings of the Government of Barbados

The Belize Bank Limited

CariCRIS reaffirms its regional scale credit ratings for The Belize Bank Limited

RATING ACTION:

On December 5, 2024, CariCRIS reaffirmed the Issuer/ Corporate Credit Ratings assigned to The Belize Bank Limited (BBL or the Bank) at CariBBB- (Local and Foreign Currency Ratings) on the regional scale, and bzAA+ (Local Currency) on the Belize national scale. 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:

Improvement in the ratings of the Government of Belize
Increase in profitability to the order of 10% per annum over the next year
Improvement in asset quality with a NPL ratio of 2.5% over the next 2 years

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

Lowering of the ratings of the Government of Belize
The occurrence of any factors that may contribute to the deterioration of the CAR below the 9% minimum requirement for the Bank
Decrease in profitability to the order of 15% per annum over the next 2 years
Deterioration in asset quality with a NPL ratio above 7% or more sustained for 2 financial years
Cost to income ratio weakens to 75% or more sustained for 2 financial years

Analysts’ Contact Info:

Keith Hamlet
Mobile : 1-868-487-4356
khamlet@caricris.com

Sharlene Gordon
Mobile : 1-1876-618-9811
sgordon@caricris.com

www.caricris.com
info@caricris.com

NFE South Power Holdings Limited

CariCRIS downgrades its national scale credit ratings of the bond issue of NFE South Power Holdings Limited

Wigton Energy Limited

CariCRIS reaffirms ‘adequate’ creditworthiness ratings to the J $5.8 billion bond issue of Wigton Energy Limited

RATING ACTION:

On December 5, 2024, CariCRIS reaffirmed the assigned issue credit ratings of CariBBB+ (Local Currency Rating) on the regional rating scale and jmA (Local Currency Rating) on the Jamaica national scale to the J $5.8 billion bond issue of Wigton Energy Limited (Wigton or the Company). 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:

Successfully diversifying into other renewable sources of energy, geographical markets or unrelated streams of income, thereby boosting revenue stability and/or expansion.
Improved operating efficiency, with capacity and availability metrics consistently meeting targets.
Continued improvement in the economic conditions in Jamaica over the next year, thereby leading to increased demand for energy resulting in a more than 7% increase in operating profit sustained for 2 years.

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 Power Purchase Agreements.
A more than 35% increase in total operating expenses and/or a more than 15% decrease in total operating revenue leading to PAT falling by more than 80%
Inability to refinance or fully repay the bullet payment at maturity

Analysts’ Contact Info:

Anelia Oudit
Mobile : 1-868-487-8364
aoudit@caricris.com

Kyla Balwant
kbalwant@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.

NFE South Power Holdings Limited

RATING ACTION:

On December 5, 2024, CariCRIS downgraded the Jamaica national scale ratings assigned to the up to US $285 million bond issue of NFE South Power Holdings Limited (NFE SPH or the Company) by 1 notch to jmA+ (Foreign and Local Currency Ratings) and reaffirmed the regional scale ratings of CariA- (Foreign and Local Currency Ratings). 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:

Successful operations of the combined heat and power (CHP) plant over the next 2 to 3 years, in accordance with design specifications and on-time compliance with the power purchase agreement (PPA) and steam supply agreement (SSA) deliverables over the period
An improvement in the creditworthiness of the guarantor (NFE or the Parent), sustained over 2 consecutive years
2 consecutive years of reported profit after tax (PAT) of the Company, leading to an improvement in its financial position and tangible net worth (TNW)

Factors that could, individually or collectively, lead to a lowering of the Ratings and/ or Outlook include:

Deterioration in the creditworthiness of the guarantor, thereby reducing its ability to honour its guaranteed commitment to NFE SPH in a timely manner, if so required
Breach of contract by the operating and maintenance (O&M) counterparty, Caribbean Blue Skies Energy, which may have a negative impact on operations
Any material litigation which may affect NFE or NFE SPH
Breach of any of the bond covenants
A material reduction in the CHP plant’s availability which would impair its ability to deliver output stipulated in the PPA and SSA
Failure by NFE or NFE SPH to capitalise the principal reserve account, at the appropriate time
The inability of NFE SPH to refinance the bullet payment if necessary

Analysts’ Contact Info:

Keith Hamlet
Mobile: 1-868-487-8356
khamlet@caricris.com

Rudra Bhimsingh
rbhimsingh@caricris.com

www.caricris.com
info@caricris.com

PROVEN Group Limited

CariCRIS reaffirms ‘adequate creditworthiness’ ratings for PROVEN Group Limited

RATING ACTION:

On December 5, 2024, CariCRIS reaffirmed the assigned ratings of CariBBB+ (Foreign and Local Currency Ratings) on the regional rating scale, and jmA (Foreign and Local Currency Ratings) on the Jamaica national scale to PROVEN Group Limited (PROVEN or the Group). A stable outlook was assigned.

Download Full Rating Rationale

RATING SENSITIVITY FACTORS:

Factors that could, individually or collectively, lead to an improvement of the rating and/or outlook:

Cost to Income ratio improves to 75% and below
Improvement in financial performance leading to operating profits and PAT over FY2020-FY2022 averages of US $6.9 million and US $20.1 million respectively

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

Economic environment negatively impacting revenue streams leading to losses
Increase in PROVEN’s stand-alone debt to equity ratio to above 2 times
A systemic increase in liquidity pressures in the environment leading to funding withdrawals from large institutional investors
Gross profit from RMCL falls by over 44.7%
A 90% decline in share of profits from associated companies

Analysts’ Contact Info:

Anelia Oudit
Mobile : 1-868-487-8364
aoudit@caricris.com

Jeffrey James
Mobile : 1-868-713-5987
jjames@caricris.com