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Financial News

Oct 2016 Financial News

NGC suffers ratings downgrade

Oct 06, 2016

Caribbean Information and Credit Rating Services Ltd (CariCRIS) has lowered its ratings for the National Gas Company of T&T Ltd’s (NGC) US$ 400 million debt issue  by one notch to CariAA+ (Foreign and Local Currency) from CariAAA on the regional rating scale, and ttAA+ from ttAAA on the Trinidad and Tobago (T&T) national rating scale with a stable outlook. 

The regional ratings agency said: “These ratings indicate that the level of creditworthiness of this obligation, adjudged in relation to other obligations in the Caribbean and within T&T is high.

“The downgrade is underpinned by the downgrade of the sovereign, and the company’s high exposure to the contracting energy sector in T&T, falling energy prices and continued gas supply shortages. The challenges in the energy sector have affected the Company’s revenue generating capacity over the last year.”

CariCRIS said, however, that the energy company’s creditworthiness continues to reflect its strong liquidity and debt protection measures, though deteriorating as a result of high dividend payments which reduced cash flow from operations.

Further supporting the ratings is NGC’s strategic importance to the T&T Government, which indicates the likelihood of support in the event of financial distress.

 

Source:
Trinidad Guardian
Thursday October 6, 2016

http://www.guardian.co.tt/business/2016-10-06/ngc-suffers-ratings-downgrade