CariCRIS reaffirms “good creditworthiness” ratings of Point Lisas Industrial Port Development Corporation Limited

CariA+ (Regional Scale Foreign Currency)

CariA+ ? (Regional Scale Local Currency)

ttA+?????? (Trinidad & Tobago National Scale)

Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed the assigned ratings of CariA+ (Foreign and Local Currency Ratings) on the regional rating scale and ttA+ on the Trinidad and Tobago (T&T) national scale to Point Lisas Industrial Port Development Corporation Limited (PLIPDECO or the Company). These ratings include a single notch up for the likelihood of support if needed from its majority shareholder, the Government of the Republic of Trinidad and Tobago (GORTT). The ratings indicate that the level of creditworthiness of this obligor, adjudged in relation to other obligors in the Caribbean is good.?

CariCRIS has also assigned a stable outlook on the ratings. The stable outlook is based on the expectation that PLIPDECO would continue to display good financial performance over the next 12 to 15 months. This is driven by an improvement in port operations due to an increase in containerized and general cargo revenue and throughput, as a result of new shipping agreements and higher tariffs. Additionally, the Company’s ongoing efficiency optimization initiatives are also expected to further support its credit risk profile. Moreover, PLIPDECO is expected to remain well-capitalized and comfortably service its debt obligations.

PLIPDECO’s ratings continue to reflect its strong market position in port operations and industrial real estate management in T&T, enhanced by a diversified product offering. Additionally, the Company’s stable tenant base, which contributes to reliable earnings on the industrial estate, notwithstanding a high rental concentration, also supports the rating. Furthermore, the ratings reflect the Company’s comfortable financial performance in 2023, supported by adequate capitalization and healthy debt protection metrics. Nonetheless, PLIPDECO is exposed to global economic vagaries which can dampen its financial performance during periods of slower global trade.

Rating Sensitivity Factors:

Factors that could individually or collectively, lead to an improvement in the ratings and/or outlook include:?

• A greater than 8% y-o-y improvement in revenue for 2 consecutive years
• An improvement in profits by 40% for 2 consecutive years excluding the effects of revaluation gains and one-off recurrences

Factors that could individually or collectively, lead to a lowering of the ratings and/or outlook include:?

• A material decline of 10% in revenue in 2024
• Effective DSCR falls below 1 time
• Any material Company event that can result in default/breaches of covenants

For more information on PLIPDECO’s ratings, please visit www.caricris.com? or contact:

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Dr. Kathryn Budhooram????????????????????????????????????????????????????

Head, Rating Operations????????????????????????????????????????????????????????????

Cell: 1-868-706-6510???????????????????????????????????????????????????????????????????????

E-mail: [email protected]??

?OR?

Mr. Keith Hamlet

Manager, Ratings

Cell: 1-868-487-8356

E-mail: [email protected]??????????????????????????????????????????

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?Note:

This rating release is transmitted to you for the sole purpose of dissemination through your agency/newspaper/magazine. You may use this rating release in full or in part without changing the meaning or context thereof, but with due credit to CariCRIS. CariCRIS has the sole right of distribution of its rating releases, for consideration or otherwise, through any media, including websites, portals, etc.

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