RATING ACTION:
On June 28, 2024, CariCRIS reaffirmed the Bond Issue Credit ratings assigned to the US $40 million bond issue of PBS Technologies (Trinidad) Limited (PBSTTL or the Company) at CariA- (Foreign Currency Rating) and CariA (Local Currency Rating) on the regional scale, and jmAA (Foreign Currency Rating) and jmAA+ (Local Currency Rating) on the Jamaica national scale. The outlook was revised to positive from stable.
RATING SENSITIVITY FACTORS:
Factors that could, individually or collectively, lead to an improvement of the ratings and/ or outlook include:
- An increase in profit after tax (PAT) of above 10% for 1 year
- An increase in debt service coverage ratio (DSCR) and effective DSCR to above 1.5 times and 2.5 times respectively
Factors that could, individually or collectively, lead to a lowering of the ratings and/ or outlook include:
- A greater than 4% decline in operating revenue for 2 consecutive years
- A decline in interest cover to below 2 times
- A deterioration in the Company’s debt/ Tangible Net Worth (TNW) ratio to more than 3.5 times
- A breach of any of the financial covenants associated with the US $40 million Bond
- Material deviation of PBSTTL’s audited financial accounts for 2023 from management accounts presented, resulting in lower profitability and cash flow adequacy metrics
- Unfavourable capital market conditions that could hinder access to new capital, given the likelihood that the US $40 million bond would have to be refinanced in 2026
- A deterioration in the sovereign risk profiles of the countries in which the Company operates
Analysts’ Contact Info:
Keith Hamlet
Mobile : 1-868-487-8356
[email protected]
Maxwell Gooding
[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.