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
[email protected]
Rudra Bhimsingh
[email protected]
www.caricris.com
[email protected]
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.