RATING DRIVERS
Supporting Factors:
- Moderate industry diversification and good market position in the Group’s three core business portfolios
- The Group’s portfolio of complementary businesses promotes cross selling and value chain maximization
- Strong cash flows and healthy debt protection metrics continue to drive solid financial performance
Constraining Factors:
- Continued weak economic activity in Trinidad & Tobago and Barbados could exert downward pressure on the Group’s profitability
- Restrictions on accessing US$ liquidity in the Trinidad and Tobago market continue to negatively impact business operations, although improvements have been noted
Rating Sensitivity Factors:
Factors that could, individually or collectively, lead to an improvement in the ratings and/or outlook include:
- Continued intraregional and extra-regional expansion resulting in an increase in operating revenue by > 15% for 2 consecutive financial periods
- An improvement in operating profit margin to > 12.5% for 2 consecutive financial periods
- An increase in operating cash flows leading to an improvement in effective DSCR to > 7.5 times for 2 consecutive financial periods
Factors that could, individually or collectively, lead to a lowering of the ratings and/or outlook include:
- A deterioration in operating profit margin to < 5% for 2 consecutive financial periods
- A decline in operating cash flows leading to a deterioration in effective DSCR to < 1.2 times for 2 consecutive financial periods
COMPANY BACKGROUND
Massy Holdings Limited (Massy) has its genesis in 1932 when Neal Engineering Company Limited led by Harry Neal, and Massy Limited headed by Charles Massy merged to establish Neal & Massy Engineering Company Limited. In 1958, the company continued its expansion and listed on the Trinidad and Tobago Stock Exchange (TTSE). The Group rebranded in 2014 to form a unified brand and create a common identity. The holding company name was formally changed from Neal & Massy Holdings Limited to Massy Holdings Limited. The Massy Group currently comprises of over 60 companies with a presence in the retail, distribution, automotive, industrial equipment, energy and industrial gas products and supporting services, consumer finance, remittance, reinsurance and real estate industries, in over 15 countries, throughout the Caribbean and including Colombia and the United States of America (USA).
Analytical Contacts:
Megan Dass
Tel: 1-868-627-8879 Ext. 239
E-mail: [email protected]
Keith Hamlet
Tel: 1-868-627-8879 Ext. 244
Cell: 1-868-487-8356
E-mail: [email protected]
Website: www.caricris.com
E-mail: [email protected]
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