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 per cent as at March 2023, lower than 84.1 per cent reported as at March 2022.
CariCRIS has also assigned a stable outlook on the ratings.
“The stable outlook is based on our 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, digitalization initiatives as well as the full resumption of activities at Caymanas Park, following the lifting of COVID-19 restrictions, the agency said.
Therefore, CariCris expect SVL to maintain its good profitability and debt-serving metrics over the next 12 to15 months.
SVL’s stable operations are supported by a favourable regulatory landscape coupled with a sound governance framework and risk management practices, CariCris noted.
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.
