RATING ACTION:
On May 15, 2026, CariCRIS assigned Initial Issuer/Corporate Credit Ratings to South Jamaica Power Company Limited (SJPC or the Company) at CariA- (Foreign Currency Rating) and CariA (Local Currency Rating) on the regional rating scale, and jmA+ (Foreign Currency Rating) and jmAA- (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 in the Ratings and/ or Outlook include:
- An improvement in the credit rating of the sovereign
- An improvement in the credit rating of the Ultimate Parent
- Return on Assets (ROA) > 5%, sustained for 2 financial years
- Effective Debt Service Coverage Ratio (DSCR) > 3.4 times, sustained for 2 financial years
Factors that could, individually or collectively, lead to a lowering of the Ratings and/ or Outlook include:
- A deterioration in the credit rating of the sovereign
- A deterioration in the credit rating of the Ultimate Parent
- A reduction in the Ultimate Parent’s shareholding to below 50%
- Failure to satisfy any existing debt covenants
- Failure to refinance upcoming debt maturities
- ROA < 3%, sustained for 2 financial years
- A reduction in dependable capacity and net energy output below the minimum required for break-even operations and adequate debt servicing
- Effective DSCR < 1 time
Analysts’ Contact Info:
Keith Hamlet
Mobile: 1-868-487-8356
E-mail: khamlet@caricris.com
Megan Dass
Mobile: 1-868-713-6863
E-mail: mdass@caricris.com