CariCRIS Reaffirms “adequate creditworthiness” Ratings for
Saint Lucia Electricity Services Limited (LUCELEC)
Caribbean Information and Credit Rating Services Limited (CariCRIS), the Caribbean regional credit rating agency, has reaffirmed the ratings of CariBBB (Foreign Currency
Rating) and CariBBB (Local Currency Rating) on its regional rating scale to the notional
debt issue of the size of USD 15 million of Saint Lucia Electricity Services Limited
(LUCELEC). These ratings indicate that the level of creditworthiness of this obligation,
adjudged in relation to other obligations in the Caribbean, is adequate.
The ratings on LUCELEC continue to reflect the company’s monopoly position in Saint
Lucia, healthy financial profile and favourable operating efficiency. The ratings on
LUCELEC are constrained by the creditworthiness of its sovereign as its operation is
solely in the Saint Lucian economy. The demand for LUCELEC’s services is cyclical in
nature, reflecting the economic cycle of the sovereign. Further tempering the ratings are
its indirect exposure to fuel prices and the risks of production outages and damage to
property that result from its single location generation plant and self-insurance for its
transmission and distribution infrastructure.
On the regional scale, LUCELEC’s ratings are significantly influenced by Saint Lucia’s
relative credit standing within the Caribbean, rated CariBBB+ (Foreign Currency Rating)
by CariCRIS on the Caribbean regional rating scale. Going forward LUCELEC’s credit
profile will be dependent upon its ability to undertake debt funded capital expenditure
without impairing performance indicators and any changes to the governing legislation
that would adversely impact its operations.
Click the link below to download the CariCRIS Release (PDF)
CariCRIS Media Release
Back to top
|
