RATING ACTION:
On March 14, 2025, CariCRIS reaffirmed the issuer/corporate credit ratings assigned to Guyana Shore Base Incorporated (GYSBI or the Company) at CariAA- (Foreign and Local Currency Ratings) on its regional rating scale. A stable outlook was maintained.
Factors that could, individually or collectively, lead to an improvement in the ratings and/or outlook include:
- Successful operations of GYSBI over the next 2 years, leading to ROA and ROE of 15% and 50% respectively, for 2 consecutive years.
- A reduction in client concentration risk where a single client will not account for more than 50% of the Company’s revenue, sustained for 2 financial years
Factors that could, individually or collectively, lead to a lowering of the ratings and/or outlook include:
- Failure to satisfy any of the performance requirements of the contractual agreement with Exploration and Production Guyana Limited (EEPGL)
- An increase in GYSBI’s operating expenses, resulting in a deterioration in the cost to income ratio to 85% or higher, sustained for 2 consecutive years
- Failure of GYSBI to meet EEPGL’s key performance indicators (KPIs) stipulated in the 11-year contract
- A reduction in revenue leading to a decline in the GP Margin to 35% or lower, sustained for 2 consecutive years
- An increase in debt leading to increased leverage of above 3.5 times sustained for 2 financial periods
- An increase in det servicing requirements, leading to a decrease in effective debt service coverage ratio (DSCR) to below 1.25 times sustained for 2 financial years
Analysts’ Contact Info:
Keith Hamlet
Mobile: 1-868-487-8356
[email protected]
Sharlene Gordon
Mobile: 1-876-564-5230
[email protected]
www.caricris.com
[email protected]
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