Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed the assigned ratings of CariAA- (Foreign and Local Currency Ratings) on the regional scale, and jmAAA (Local Currency Rating) on the Jamaican national scale, to the J$13.4 billion bond issue of Guardian Holdings Ltd (GHL).
The regional scale ratings indicate that the level of creditworthiness of this debt obligation, adjudged in relation to other obligations in the Caribbean is high, the rating agency said in a news release yesterday.
The Jamaican national scale rating indicates that the level of creditworthiness of this debt obligation compared to other debt obligations in Jamaica is the highest. CariCRIS assigned a stable outlook on the ratings.
"The stable outlook for GHL is based on the expectation of continued good financial performance over the next 12 to 15 months. This is expected to be driven by the solid performance of GHL's operating subsidiaries, which is expected to enable the company to comfortably meet its obligations as they become due," said the rating agency.
Additionally, all GHL’s subsidiaries are expected to remain well-capitalised. GHL’s ratings are supported by the moderate industry diversification and strong market position of its subsidiaries, particularly in the English and Dutch-speaking Caribbean.
"Also supporting the ratings is GHL’s overall good financial performance, driven by its regulated subsidiaries which report strong capitalisation levels. Furthermore, GHL maintains good liquidity metrics, enhancing its ability to service debt," said the rating agency.
"Moreover, the Company’s effective risk management systems further underpin these ratings. These rating strengths are tempered by the structural subordination of GHL’s cash flows, which may impact timely debt servicing. Additionally, GHL’s current exposure to downside risks in Trinidad and Tobago and Jamaica also tempers the ratings," CariCRIS added.
