GraceKennedy Limited

RATING ACTION:

On June 13, 2025, CariCRIS reaffirmed the assigned issuer ratings of CariA (Local and Foreign Currency Ratings) on the regional rating scale and jmAA (Local and Foreign Currency Rating) on the Jamaica national scale to GraceKennedy Limited (GKL or the Group). CariCRIS also reaffirmed the assigned issue ratings of the Group’s bond issue of up to J $3 billion ratings at CariA (Local Currency Rating) on the regional rating scale and jmAA (Local Currency Rating) on the Jamaica national scale. A stable 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 creditworthiness of the Government of Jamaica
• Improvement in PAT margin to 5.5% and over sustained for 2 consecutive years
• Improvement in Operating Profit margin to 7.5% and over sustained for 2 consecutive years
• An increase in profitability resulting in return on assets (ROA) > 5% for 2 consecutive years

Factors that could, individually or collectively, lead to a lowering of the Ratings and/ or Outlook include:

• Substantial and sustained deterioration in operating revenue of more than 10% over 2 successive years
• A decline in operating profit margin to 5% or below
• Impending trade tensions and/or a material increase in tariffs that can adversely impact supply chain and inventory costs resulting in the GP margin falling to below 35%
• Decline in the parent company’s DSCR ratio to <1.33 times or fall in effective DSCR to below 1.5x
• Increase in Debt to EBITDA ratio to >4.0 times
• A lowering of the creditworthiness of the Government of Jamaica