CariCRIS reaffirms 'good creditworthiness' for Plipdeco

The Caribbean Information and Credit Rating Services Ltd (CariCRIS) has reaffirmed the assigned credit ratings of CariA+ on the regional and ttA+ on the national rating scale to Point Lisas Industrial Port Development Corporation Ltd (Plipdeco).

In a release, CariCRIS said these ratings indicate a good level of creditworthiness of this obligor, adjudged in relation to other obligors in the Caribbean.

It also includes a single notch up for the likelihood of support if needed from its majority shareholder, the Government.

The Government has a 51 per cent stake in the company, while the remaining 49 per cent is listed on the TT Stock Exchange.

CariCRIS also assigned a stable outlook on the ratings.

"The stable outlook is based on the expectation that Plipdeco would continue to display good financial performance over the next 12-15 months. This is driven by an improvement in port operations due to an increase in containerised and general cargo revenue and throughput, as a result of new shipping agreements and higher tariffs," it said.

Additionally, the company’s ongoing efficiency optimisation initiatives are also expected to further support its credit risk profile.

"Plipdeco is expected to remain well-capitalised and comfortably service its debt obligations. Its ratings continue to reflect its strong market position in port operations and industrial real estate management in TT, enhanced by a diversified product offering," CariCRIS said.

It noted that the company’s stable tenant base, which contributes to reliable earnings on the industrial estate, notwithstanding a high rental concentration, also supports the rating.

Furthermore, the ratings reflect Plipdeco’s comfortable financial performance in 2023, supported by adequate capitalisation and healthy debt protection metrics.

"Nonetheless, Plipdeco is exposed to global economic vagaries which can dampen its financial performance during periods of slower global trade," CariCRIS said.