RATING ACTION:
On March 12, 2024, CariCRIS upgraded the assigned Issuer/ Corporate Credit Ratings by 1-notch to CariBBB- (Foreign & Local Currency Ratings) on the regional rating scale and jmBBB+ (Foreign & Local Currency Ratings) on the Jamaica national scale to Island Car Rentals Limited (ICR or the Company). 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 to the ratings of the Government of Jamaica
- A 12.5% or greater annual increase in operating profits, sustained for 2 consecutive years
- Implementation of an Enterprise Risk Management Policy and further improvements to the Company’s corporate governance structure
- A substantial reduction in debt in line with ICR’s strategy to deleverage, leading to a debt to TNW ratio of below 1.0 time
Factors that could, individually or collectively, lead to a lowering of the ratings and /or outlook include:
- A deterioration to the ratings of the Government of Jamaica
- Total operating revenue growth slows below 2.5%, leading to a deterioration in operating profit, sustained over 2 consecutive years
- A 10% or greater rise in total operating expenses, leading to a deterioration in operating profit, sustained over 2 consecutive years
- A fall in DSCR (operating cashflow / debt servicing burden) to less than 1.5 times
- Failure to satisfy any of the covenants of the J $1.8 billion commercial loan facility
Analysts’ Contact Info:
Keith Hamlet
Mobile : 1-868-487-8356
[email protected]
Brandon Singh
[email protected]
www.caricris.com
[email protected]
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