Supreme Ventures Maintains 'good' Credit Rating from CariCRIS

• Gaming and lottery company Supreme Ventures Limited (SVL) has retained a 'good' credit rating from the Caribbean Information and Credit Rating Services (CariCRIS).
• SVL’s corporate credit rating was reaffirmed at CariA (Local Currency Rating) and CariA- (Foreign Currency Rating) on the regional rating scale and jmAA- (Local Currency Rating) and jmA+ (Foreign Currency Rating) on the Jamaica national scale.
• The regional scale local currency rating reflects the obligor's strong creditworthiness relative to other borrowers in the Caribbean. Meanwhile, the national scale local currency rating indicates high creditworthiness compared to other borrowers in Jamaica.
• CariCRIS has given the ratings a stable outlook, indicating its expectation that the Group will sustain strong financial performance, with ongoing profitability and robust debt protection metrics. This outlook is bolstered by the proactive execution of strategic growth initiatives aimed at enhancing revenue generation across SVL’s core business areas, even amidst increasing operating expenses. Furthermore, favourable economic conditions in Jamaica, the Group's main market, combined with expansion initiatives in Ghana and Guyana, are anticipated to further enhance performance over the next 12 to 15 months.
• An upgrade of the Government of Jamaica’s (GOJ’s) credit rating, which would enhance the overall credit risk profile; an increase in earnings from operations in Guyana to over 15% of SVL’s annual profits; and sustained revenue growth of more than 12% over the next 12 to 18 months are all factors that could result in a rating upgrade.
• However, the downside risks to the rating include a decline in the GOJ’s credit rating within the next 12 to 15 months, a reduction in SVL’s revenue by more than 12%, and a breach of financial covenants.

 (Source: Caricris)