RATING DRIVERS
Supporting Factors
- The Group’s wide geographic and industry diversity serves to temper the impact of revenue volatility
Constraining Factors
- Materially reduced profitability metrics over the past year driven mainly by the impact of the COVID-19 pandemic
- Continued low debt protection metrics
- Significant sovereign risk exposure in economies in which GEL operates alongside uncertainties in the global economic environment are likely to present key downside risks to the operations and profitability of the Group
Rating Sensitivity Factors
Factors that could, individually, or collectively lead to an improvement in the ratings and/ or outlook include:
- An improvement in the effective DSCR to more than 2.0 times for 2 consecutive years.
- Revenue increases by more than 10% per annum for 2 consecutive years.
Factors that could, individually, or collectively lead to a lowering of the ratings and/ or outlook include:
- A decline in the effective DSCR to less than 1 time for 2 consecutive years.
- A decline in revenue of more than 20% per annum for 2 consecutive years due to the challenging economic conditions in GEL’s main markets.
- End of year financial performance that is materially lower than that projected by CariCRIS
COMPANY BACKGROUND
Incorporated in 1921, Goddard Enterprises Limited (“GEL” or “the Group”), started with the opening of a meat and grocery store in Bridgetown by Joseph Nathaniel Goddard and his son, Victor. This family-run business was converted into a public company in 1978, with the Goddard family retaining a majority shareholding (64%). GEL is now the fourth-largest conglomerate (by assets) operating in Barbados. As of September 2020, it comprised 78 subsidiaries and 33 associated companies employing over 4,700 persons. Its operations, which are spread over 24 industries and 25 countries throughout the Caribbean and Latin America are classified into 4 divisions; namely: (i) automotive, building supplies and services, (ii) manufacturing and services, (iii) catering and ground handling services, and (iv) Caribbean Distribution Partners Limited (CDP[1]).
[1] CDP is a group of 6 Fast Moving Consumer Goods (FMCG) distribution companies operating in Trinidad and Tobago, Barbados, Grenada, St. Vincent and the Grenadines, Saint Lucia, and Guyana. CDP is owned by the Agostini Group and GEL through a 50:50 joint venture arrangement.
Analytical Contacts:
André Joseph
Tel: 1-868-627-8879 Ext. 224
Mobile: 1-868-788-4693
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]
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.