Oct 2014 Financial News

S&P: No ratings change from Phoenix Park IPO

Oct 13, 2014

Standard & Poor's Ratings Services said in a statement Wednesday that its "A-/Stable" debt rating on project finance entity Phoenix Park Gas Processors Ltd is unchanged after Finance Minister Larry Howai announced that the National Gas Company of T&T Ltd (NGC) is considering divesting 49 per cent of its subsidiary T&T NGL Ltd (TTNGL) via an initial public offering (IPO) on the T&T Stock Exchange. TTNGL owns 39 per cent of Phoenix Park.

Consequently, the public would indirectly own about 19 per cent of the project.
"We conclude that NGC's sale of this minority share of Phoenix Park would not affect our rating on the project's debt. A prospective IPO of part of TTNGL on the T&T Stock Exchange would not materially change the project's operations, which have continued to be strong, and it would not cause the project's transaction structure to be a ratings constraint. We believe that there are sufficient anti-filing mechanisms in place to delink the project from parent (the government) creditworthiness," S&P said.

In his 2015 budget statement delivered September 8 (2014), Howai had said: "As soon as it is appropriate the National Gas Company of Trinidad and Tobago Limited will be offering to the national community 49.0 per cent of the shareholding of the Trinidad and Tobago NGL Limited which company holds the 39.0 per cent shareholding of the National Gas Company in Phoenix Park Gas Processors Limited."

The T&T government, through NGC, acquired 39 per cent of Phoenix Park in August 2013 from US oil company, ConocoPhillips, for US$600 million. The transaction meant that NGC moved from 51 per cent ownership of Phoenix Park to 90 per cent with the remaining 10 per cent being owned by GE.

Source:
Trinidad Guardian
Sunday October 12, 2014

http://www.guardian.co.tt/business/2014-10-12/sp-no-ratings-change-phoenix-park-ipo