Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed the assigned ratings of CariAA– (Foreign and Local Currency Ratings) on the regional scale and jmAAA (Local Currency Rating) on the Jamaican national scale, to the Guardian Holdings Limited’s (GHL) $13.4-billion bond issue of.

The regional scale ratings indicate a high level of creditworthiness of this debt when assessed against other debt obligations in the Caribbean. The Jamaican national scale rating reflects the highest level of creditworthiness of this debt obligation compared to other debt obligations in Jamaica.

CariCRIS has assigned a stable outlook on the ratings, noting that it anticipates the continued good financial performance for GHL over the next 12 to 15 months.

This expectation is based on the solid performance of GHL’s operating subsidiaries, which should drive the company to “comfortably meet its obligations as they become due”.  CariCRIS added that all GHL’s subsidiaries are expected to remain well-capitalised.

“GHL’s ratings are supported by the moderate industry diversification and strong market position of its subsidiaries, particularly in the English and Dutch-speaking Caribbean,” the regional rating agency explained.

Another factor supporting the ratings, CariCRIS said, is GHL’s overall good financial performance, driven by its regulated subsidiaries which report strong capitalisation levels. GHL also maintains good liquidity metrics, enhancing its ability to service debt.

Additionally, the company’s effective risk management systems further underpin these ratings.

“These rating strengths are tempered by the structural subordination of GHL’s cash flows, which may impact timely debt servicing. Additionally, GHL’s current exposure to downside risks in Trinidad and Tobago and Jamaica also tempers the ratings,” CariCRIS stated.