CariCRIS reaffirms $400m EHL bond issue

Caribbean Information and Credit Rating Services Ltd (CariCRIS) has reaffirmed the assigned issue ratings of CariA on the regional scale and ttA on the national scale to Endeavour Holdings Ltd (EHL) $400 million bond issue.

CariCRIS, in a release, said these ratings indicate a good level of creditworthiness of this debt obligation in the Caribbean and within Trinidad and Tobago.

"The ratings are supported by EHL’s good asset quality and diversified real estate portfolio, which underpin its strong competitive position in the TT real estate market," it said.

CariCRIS also assigned a positive outlook on the ratings as EHL recorded an increase in operating profits following declines over the past three years.

"The positive outlook is based on anticipated increases in operating profit to pre-covid19 levels, supported by additional rental income from new tenants, the recognition of a full year’s revenue from its recent acquisition of Endeavour POS Properties Ltd (EHL POS) and an improvement in economic activity," it said. "Following the repayment of Tranche A of the bond, EHL’s debt protection metrics are likely to improve, and the company is expected to continue to fully meet its debt obligations over the next 12 to 15 months."

Further supporting the ratings are EHL’s improved occupancy levels with a good tenant retention rate and good financial performance supported by improved operating profit margins.

CariCris said these ratings are tempered by the concentrated sovereign risk, albeit improving economic conditions, which could limit the growth of EHL’s financial performance.