PanJam’s Ratings Reaffirmed by CariCRIS

  • Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed the Issuer/Corporate Credit Ratings assigned to Pan Jamaica Group Limited (PanJam). PanJam maintains a rating of CariA (Foreign Currency (FC) and Local Currency (LC)) on the regional rating scale and jmAA (FC and LC) on the Jamaica national scale.
  • The regional scale ratings indicate that PanJam has good creditworthiness compared to other obligors in Jamaica and the broader Caribbean region. The national scale ratings indicate that PanJam has high creditworthiness compared to other obligors within Jamaica.
  • CariCRIS has assigned a stable outlook to these ratings, as it expects PanJam to remain profitable, albeit at a reduced rate over the next 12-15 months. This outlook is supported by economic growth expectations in PanJam's key markets, which should support asset growth and income. Additionally, strategic initiatives and technological advancements continue to support the Group’s operations.
  • Although PanJam’s performance might be affected by reduced profit contributions from its associated companies, CariCRIS expects the Group to remain well-capitalised and comfortably service its debt obligations over the next 12-15 months.
  • Key strengths of PanJam include diversified and competitive operating segments enhanced by ongoing strategic initiatives following recent amalgamations; improved financial performance supported by contributions from associated companies and adequate liquidity and strong debt-servicing capability backed by sufficient cash balances and a significant portfolio of marketable assets. Increased capital strength and a seasoned management team, complemented by a robust board of directors with strong risk management policies and frameworks, were among the drivers of the rating.
  • Key risks for the company include continued reliance on dividend income and profit contributions from associated companies, though this reliance is expected to diminish in the medium-term following amalgamation efforts. Additionally, challenging economic conditions in its operating markets, though improving, remain potential downside risks to PanJam’s financial operations.

(Source: CariCRIS)