CariCRIS Upgrades Rating For SVL
- Caribbean Information and Credit Rating Services Limited (CariCRIS) has upgraded the regional scale ratings of Supreme Ventures Limited (SVL or the Group) by one notch to CariA (Local Currency Rating) and CariA- (Foreign Currency Rating) and reaffirmed the Jamaica national scale ratings of jmAA- (Local Currency Rating) and jmA+ (Foreign Currency Rating).
- The regional scale local currency rating indicates that the level of creditworthiness of this obligor, adjudged in relation to other obligors in the Caribbean is good. The national scale local currency rating indicates high creditworthiness compared to other obligors in Jamaica.
- The one-notch upgrade on the regional scale ratings is attributed to the improvement in the credit risk profile of the sovereign over the last 12 months following the lifting of the coronavirus (COVID-19) pandemic restrictions.
- This resulted in consistent real gross domestic product (GDP) growth over the last four quarters, improved overall fiscal operations and a reduced debt to GDP estimated at around 77.9% as of March 2023, lower than 84.1% reported as of March 2022.
- The agency highlighted that the stable outlook is based on its expectation that the group’s financial performance in 2023, will continue its upward trajectory from its six-month performance underpinned by continued growth in the group’s core business, launch of new products, business expansion, and digitalization initiatives.
- Therefore, CariCris expects SVL to maintain its good profitability and debt-serving metrics over the next 12 to 15 months.
- Nonetheless, the ratings are tempered by the group’s high sovereign risk exposure which can present downside risks to SVL’s operations and earnings, notwithstanding improving economic conditions.
- Overall, a higher rating reinforces the creditworthiness of SVL. A better rating could translate into better credit terms should the company decide to raise additional debt in the near term.
(Source: CariCRIS Ratings)