RATING ACTION:
On December 6, 2023, CariCRIS reaffirmed the assigned issue ratings of CariA (Local and Foreign Currency Ratings) on the regional scale and ttA (Local Currency Rating) on the Trinidad and Tobago national scale to the TT $400 million bond issue of Endeavour Holdings Limited (EHL or the Company). A positive outlook was assigned.
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
- Rental income increases by 8% or more leading to a more than 13% increase in operating profit
- Occupancy levels rising to above 95%
- A rise in effective DSCR to over 1.5 times for 2 consecutive years
Factors that could, individually or collectively, lead to a lowering of the ratings/ or outlook include:
- An increase in rental expenses to 40% or more of rental income leading to a material decline in PAT
- Occupancy levels declining to below 75%
- Breach of any of the bond’s financial covenants
- A fall in the effective DSCR to below 1.5 times for 2 consecutive years.
Analysts’ Contact Info:
Anelia Oudit
Mobile : 1-868-487-8364
Brandon Singh
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