RATING ACTION:
On December 5, 2024, CariCRIS reaffirmed the assigned issue credit ratings of CariBBB+ (Local Currency Rating) on the regional rating scale and jmA (Local Currency Rating) on the Jamaica national scale to the J $5.8 billion bond issue of Wigton Energy Limited (Wigton 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:
- Successfully diversifying into other renewable sources of energy, geographical markets or unrelated streams of income, thereby boosting revenue stability and/or expansion.
- Improved operating efficiency, with capacity and availability metrics consistently meeting targets.
- Continued improvement in the economic conditions in Jamaica over the next year, thereby leading to increased demand for energy resulting in a more than 7% increase in operating profit sustained for 2 years.
Factors that could, individually or collectively, lead to a lowering of the ratings/or outlook include:
- Breach of any of the debt covenants.
- Failure to satisfy any of the performance requirements of the Power Purchase Agreements.
- A more than 35% increase in total operating expenses and/or a more than 15% decrease in total operating revenue leading to PAT falling by more than 80%
- Inability to refinance or fully repay the bullet payment at maturity
Analysts’ Contact Info:
Anelia Oudit
Mobile : 1-868-487-8364
[email protected]
Kyla Balwant
[email protected]
www.caricris.com
[email protected]
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