CariCRIS lowers NiQuan’s Ratings
Caribbean Information & Credit Rating Services Limited (CariCRIS), the region’s credit rating agency, has today lowered the assigned issuer/corporate credit ratings of NiQuan Energy Trinidad Limited (NiQuan or the Company) to CariB (Foreign and Local Currency Ratings) on the regional rating scale and ttB on the Trinidad and Tobago (T&T) National Scale as well as jmB on the Jamaica National Scale. These ratings indicate that the level of creditworthiness of this obligor, adjudged in relation to other obligors in the Caribbean and within T&T and Jamaica is weak.
The lowering of the assigned ratings reflect (i) NiQuan’s inability to attain full commercial operations at the nameplate capacity by September 30, 2023 (identified as a factor that could lead to a lowering of the rating in our March 2023 report) and (ii) the termination of the gas sales contract (GSC) by Trinidad and Tobago Upstream Downstream Energy Operations Company Limited (TTUDEOCL) and which has become subject to legal proceedings by NiQuan.
CariCRIS notes the considerable progress made by NiQuan in achieving a proven plant producing zero sulphur diesel and naphtha and have transferred 15,000 barrels of product to its off-taker, Paria Fuel Trading Company Limited. We will consider revising its ratings upward upon the successful resumption of a long-term GSC, together with successful refinancing of the existing Short-Term Note Instruments (STNI) into a longer-term facility. We may, however, further lower the ratings if the STNI is not refinanced or extended by December 31, 2023, or if any other credit negative events occur before that date.
October 24, 2023