Rating agency Caribbean Information and Credit Rating Services Ltd (Caricris), has reaffirmed the ratings currently assigned to the US $400 million debt issue of the National Gas Company of T&T Ltd (NGC) of CariAA (foreign and local currency) on the regional rating scale, and ttAA on the T&T national rating scale.
These ratings indicate that the level of creditworthiness of this obligation, adjudged in relation to other obligations in the Caribbean and within T&T, is high.
CariCRIS has also assigned a stable outlook on the ratings. The stable outlook is premised on the expectation of continued good financial performance by NGC over the next 12 to 15 months, albeit at lower levels.
The company’s profitability is expected to be tempered by lower energy prices, as global supply is anticipated to increase, notwithstanding lingering geopolitical tensions. Nonetheless, CariCRIS said the NGC is expected to maintain strong debt protection metrics going forward. According to CariCRIS, the ratings continue to reflect the company’s strategic importance to the domestic energy sector and the Government.
Additionally, it noted the improving prospects for gas supply stemming from strategic alliances also bolstered the ratings.
Further supporting the ratings is NGC’s good financial
performance underpinned by increased revenues due to higher energy commodity prices in 2022.
CariCRIS added that NGC’s continued low gearing and robust debt protection metrics also continue to support the ratings.
“These rating strengths are, however, tempered by the company’s high vulnerability to a changing energy landscape characterised by volatile energy prices,” the rating agency said.