RATING DRIVERS
Supporting Factors
- Good asset quality and diversified real estate portfolio underpins a strong competitive position
- Business operations supported by adequate occupancy levels and tenant retention rate, albeit at a reduced level
- Stable financial performance supported by good operating profits, though at a lower level
- Loss of rent insurance reduces the risk of lower income from property damage
Constraining Factors
- Challenging economic environment could lead to deterioration in EHL’s financial performance
- Refinancing Risk applies, given the bond’s structure
Rating Sensitivity Factors
Factors that could, individually or collectively, lead to an improvement in the ratings and/or Outlook include:
- An improvement in the ratings of the Government of Trinidad and Tobago
- Occupancy levels rising to above 95%
Factors that could, individually or collectively, lead to a lowering of the ratings and/or Outlook include:
- A 10% decline in annual rental income
- Occupancy levels declining to below 75%
- The inability to refinance the bond/balloon payment at a rate below 7.5%
- Trade receivables in days outstanding deteriorating to 95 days and over
COMPANY BACKGROUND
Endeavour Holdings Limited (EHL or the Company) is a private commercial real estate holding company incorporated in Trinidad and Tobago (T&T) in 2001. Its majority shareholders, Endeavour ABRA Holdings Limited and Pelican Investment Limited, each owns 50%. As of December 12, 2019, EHL was listed on the Small and Medium Enterprises (SME) stock market of the Trinidad and Tobago Stock Exchange (TTSE). EHL owns 9 commercial properties and caters to the office, retail, and light industrial/warehousing rental segments.
Analytical Contacts:
Musa Abdullah
Tel: 1-868-627-8879 Ext. 223
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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