RATING ACTION:
On March 16, 2023, CariCRIS reaffirmed the assigned Bond Issue Credit ratings of CariA- (Foreign Currency Rating) and CariA (Local Currency Rating) on the regional scale and jmAA+ (Local Currency Rating) and jmAA (Foreign Currency Rating) on the Jamaica national scale to the US $40 million bond debt issue of PBS Technologies (Trinidad) Limited (PBSTTL or the Company). A stable outlook was maintained.
RATING SENSITIVITY FACTORS:
Factors that could, individually or collectively, lead to an improvement of the ratings and/ or Outlook include:
- An increase in PAT of above 10% for 2 consecutive years
- An improvement in the sovereign risk profiles of the countries that the Company operates in
Factors that could, individually or collectively, lead to a lowering of the ratings and/ or Outlook include:
- A greater than 4% decline in operating revenue for 2 consecutive years
- A decline in interest cover to below 2 times
- A deterioration in the Company’s debt/ TNW ratio to more than 3.5 times
- A breach of any of the financial covenants associated with the US $40 million Bond
- Material deviation of PBSTTL’s audited financial accounts for 2022 from management accounts presented, resulting in lower profitability and cash flow adequacy metrics
- Unfavourable capital market conditions that could hinder access to new capital given the likelihood that the US $40 million bond would have to be refinanced in 2026
- A deterioration in the sovereign risk profiles of the countries that the Company operates in
Analysts’ Contact Info:
Keith Hamlet
Mobile : 1-868-487-8356
Maxwell Gooding