The Caribbean Information and Credit Rating Services Limited (“CariCRIS”) has in respect of the assigned rating to the J$5.8 billion bond issue of Wigton Windfarm Limited (“WIG”):
- reaffirmed the Jamaica national scale rating of jmA (Local Currency Rating); and
- upgraded by 1-notch the regional scale rating to CariBBB+ (Local Currency Rating).
The national scale rating indicates that the level of creditworthiness of the bond obligation, adjudged in relation to other obligations in Jamaica is good. The regional scale rating indicates that the level of creditworthiness of the bond obligation, adjudged in relation to other obligations in the Caribbean is adequate.
Additionally, CariCRIS has maintained a stable outlook on the ratings. The stable outlook is predicated on the expectation of continued good financial performance by WIG, supported by sustained growth in Company’s core business operations and the ongoing diversification in projects, all underpinned by increasing economic activity in Jamaica. Over the next twelve (12) to fifteen (15) months, it is also expected that WIG will meet all debt service commitments in a timely manner over the period.
In a release, CariCRIS noted that the ratings are driven by WIG’s leading position as an independent renewable power producer in Jamaica with good business operations supported by long-term contracts and efficient operations underpinned by well-maintained wind turbines. WIG’s solid track record of profitability and above-average return metrics, healthy liquidity and strong debt servicing capability, notwithstanding a marginal weakening of its debt protection metrics in FY2023, further drive the ratings. WIG also continues to display good corporate governance and strong risk management practices.