RATING DRIVERS
Supporting Factors:
- Leading independent renewable power producer in Jamaica with business operations supported by long-term contracts
- Good operating efficiency supported by well-maintained wind turbines
- Solid track record of profitability and above-average return metrics
- Healthy liquidity and strong debt servicing capability supported by strong cash flows from operations
- Satisfactory corporate governance structure and robust risk management practices
Constraining Factors:
- Revenue highly susceptible to the vagaries of nature and wind variability
- Lack of government support and protective legislation for local renewable energy producers
Rating Sensitivity Factors
Factors that could, individually or collectively, lead to an improvement in the ratings and/or Outlook include:
- Successful diversification by the Company into other renewable sources of energy or geographical markets, thereby boosting revenue stability and/or expansion
- Improved operating efficiency, with capacity and availability metrics consistently meeting targets
Factors that could, individually or collectively, lead to a lowering of the ratings and/or Outlook include:
- Breach of any of the debt covenants
- Failure to satisfy any of the performance requirements of the Power Purchase Agreements
COMPANY BACKGROUND
Wigton Windfarm Limited (‘Wigton’ or the Company) is a wind energy facility that was established in April 2000 under the Jamaican Companies Act. The Company was established as a wholly owned subsidiary of the Petroleum Corporation of Jamaica (PCJ), a statutory entity created by the Petroleum Act that was initially mandated to explore and develop Jamaica’s petroleum resources. In 1995, PCJ’s mandate was expanded to include the development of indigenous renewable energy resources and be the main entity in the implementation of Jamaica’s 2009-2030 National Energy Policy. The Government of Jamaica (GoJ) divested Wigton via an initial public offering (IPO) on the Jamaica Stock Exchange (JSE) which was successfully completed in May 2019. Wigton’s shareholders are diversified among institutional and private shareholders. As at June 2021, Wigton’s top 3 shareholders were Mayberry Jamaican Equities Limited (10%), Victoria Mutual Building Society (9.6%) and the National Insurance Fund (6.4%). As at November 10, 2021, Wigton ‘s market capitalization stood at approximately J $5.5 billion[1].
Analytical Contacts:
Nadia Sanchez
Tel: 1-868-627-8879 Ext. 229
E-mail: [email protected]
Anelia Oudit
Tel: 1-868-627-8879 Ext. 226
Mobile: 1-868-487-8364
E-mail: [email protected]
Website: www.caricris.com
Email: [email protected]
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