Investment fund gets 'high' rating from CariCris

The National Investment Fund (NIF) has received an AA rating from regional credit rating agency CariCris, the second highest available from the firm.

In its report, prepared June 22, Caricris cited the high quality of the fund’s underlying asset, which lends to stable and reliable cash flows; adequate debt servicing capacity based on stable investment income; and the likelihood of support from the government, if needed.

On the other hand, CariCris considered the NIF’s constraining factors to be discretionary and high in concentration risk; as well as a refinancing risk, given the bond’s structure and refinancing component.

Factors that could lead to a lowering of the ratings or the NIF’s outlook include deterioration in the financial performance of Republic Financial Holdings shares and/or Trinidad Generation Unlimited shared, which could lead to a 20 per cent of greater reduction in dividend payments, from either of them to the NIF; and a lowering of the government’s credit rating.

The fund is expected to be launched at the end of July.