RATING ACTION:
On December 7, 2022, CariCRIS assigned initial issuer/corporate credit ratings of CariA- (Local and Foreign Currency Ratings) on the regional scale and jmAA (Local and Foreign Currency Ratings) on the Jamaica national scale to GraceKennedy Limited (GKL or the Group). 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 CariCRIS’ sovereign credit risk rating of Jamaica
- Successful acquisitions and/or regional expansion over the next 12 to 15 months with a concomitant material improvement in any of its main segments’ market share and GKL Group’s overall financial performance
Factors that could, individually or collectively, lead to a lowering of the ratings/or outlook include:
- Substantial and sustained deterioration in operating revenue of more than 11.5% over 2 successive years, leading to a material deterioration in operating margin to below 6.5%
- A more than 15% rise in COGS as a percentage of total revenue leading to a fall in GP margin to below 32%
- A lowering of CariCRIS’ sovereign credit risk rating of Jamaica
Analysts’ Contact Info:
Anelia Oudit
Mobile : 1-868-487-8364
Nadia Sanchez