RATING ACTION:
On December 7, 2022, CariCRIS reaffirmed the credit ratings assigned to the up to US $285 million bond issue of New Fortress Energy South Power Holdings Limited (NFE SPH or the Company) of CariA- (Foreign and Local Currency Ratings) on the regional rating scale and jmAA- (Local Currency Rating) on the Jamaican national. 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:
- Successful operations of the CHP plant over the next two to three years, in accordance with design specifications and on-time compliance with the PPA and SSA deliverables over the period.
- An improvement in the creditworthiness of the guarantor (NFE), sustained over 2 consecutive years.
- 2 consecutive years of reported profit after tax of the Company, leading to an improvement in its financial position and TNW.
Factors that could, individually or collectively, lead to a lowering of the ratings/or outlook include:
- Deterioration in the creditworthiness of the guarantor (NFE), thereby reducing its ability to honour its guaranteed commitment to NFE SPH in a timely manner, if so required
- Breach of contract by the O&M counterparty, Caribbean Blue Skies Energy, which may have a negative impact on operations
- Any material litigation which may affect NFE or NFE SPH
- Breach of any of the bond covenants
- A material reduction in the CHP plant’s availability which would impair its ability to deliver output stipulated in the PPA and SSA
- Failure by NFE or NFE SPH to capitalise the principal reserve account, at the appropriate time
- The inability of NFE SPH to refinance the bullet payment if necessary
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