Durrant Pate/Contributor

Jamaican renewable energy company Wigton Windfarm has got an upgraded credit rating from the Caribbean Information and Credit Rating Services (CariCRIS) with an assigned rating to its J$5.8-billion bond issue.

CariCRIS upgraded by one-notch Wigton’s regional scale rating to CariBBB+ (Local Currency Rating), while reaffirming the Jamaica national scale rating of jmA (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.

Continued good financial performance

The stable outlook is predicated on the expectation of continued good financial performance by Wigton, supported by sustained growth in the company’s core business operations and the ongoing diversification in projects, all underpinned by increasing economic activity in Jamaica.

Over the next 12 to 15 months, it is also expected that Wigton will meet all debt service commitments in a timely manner over the period.

In a news release, CariCRIS said the ratings are driven by Wigton’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.

In addition, “Wigton’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,” the release stated.

The ratings agency pointed out that Wigton also continues to display good corporate governance and strong risk management practices.