RATING ACTION:
On March 16, 2023, CariCRIS lowered the assigned issuer/corporate credit ratings by 1 notch to CariBBB+ (Foreign and Local Currency Ratings) on the regional rating scale, and ttBBB+ on the Trinidad and Tobago (T&T) national scale as well as jmA+ on the Jamaica national scale to NiQuan Energy Trinidad Limited (NETL 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:
- Full commercialisation of operations with a track record of on-spec production and adequate debt servicing
- Higher than projected revenues and profits based on favourable selling prices and lower than projected operating costs
Factors that could, individually or collectively, lead to a lowering of the ratings and/or outlook include:
- Non-achievement of optimal LRT by June 30, 2023 resulting in the inability to refinance the existing STNI or obtain approval for a further extension by noteholders by July 31, 2023
- Unsuccessful start-up of full commercial operations at the nameplate capacity of 2,400 bpd by September 1, 2023, and/or production falling below minimum operational efficiency guarantee of 2,640 bpd for a sustained period
- A fall in the Interest Cover to below 1.5 times and/or a drop in the Effective Debt Service Coverage Ratio to below 1 time postproduction at a minimum guaranteed nameplate capacity of 2,400 bpd
RATING RATIONALE
Caribbean Information and Credit Rating Services Limited (CariCRIS) has lowered the assigned issuer/corporate credit ratings by 1 notch to CariBBB+ (Foreign and Local Currency Ratings) on the regional rating scale and ttBBB+ on the Trinidad and Tobago (T&T) National Scale as well as jmA+ on the Jamaica National Scale to NiQuan Energy Trinidad Limited (NETL or the Company). The regional and national scale T&T ratings indicate that the level of creditworthiness of this obligor, adjudged in relation to other obligors in the Caribbean and within T&T is adequate. The Jamaica national scale ratings indicate that NETL’s creditworthiness, compared to other obligors in Jamaica is good.
Analysts’ Contact Info:
Anelia Oudit
Mobile : 1-868-487-8364