The Caribbean Information and Credit Rating Services Ltd (CariCris) has reaffirmed the assigned ratings of CariAA- (foreign and local currency ratings) on the regional scale, and jmAAA (local currency rating) on the Jamaican national scale, to the J$13.4 billion bond issue of Guardian Holdings Ltd (GHL).
CariCris, in a release on Thursday, said these ratings indicate a high level of creditworthiness. It also assigned a stable outlook – premised on its expectation that GHL will continue to record good financial performance.
CariCris noted that these ratings are supported by GHL and its subsidiaries’ moderate industry diversification and good market position, with a strong presence in the English and Dutch-speaking Caribbean.
The release added that GHL continues to report overall good financial performance and strong capitalisation of its operating subsidiaries.
Adequate liquidity metrics also continue to support its debt servicing ability.
“These rating strengths are tempered by the structural subordination of GHL’s cash flows, which may impact timely debt servicing. Additionally, GHL’s current exposure to downside risks in TT and Jamaica also tempers the ratings,” the release said.
GHL – whose parent company is Jamaican-owned NCB Financial Group (NCBFG) – provides a suite of financial products and services in the Caribbean.
The group recorded a 95 per cent profit increase for the financial period ending June 30.