Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed the ratings of CariBBB- (Foreign Currency Rating) on the regional rating scale and gyAA+ (Foreign Currency Rating) on the Guyana National scale, to the USD 30 million Long-Term Loan of The Pegasus Hotels of Guyana Limited (Pegasus).
A release from the agency said that the regional scale rating indicates that the level of creditworthiness of this debt obligation, weighed in relation to other obligations in the Caribbean is adequate.
The release said that the Guyana national scale rating indicates that the level of creditworthiness of this obligation adjudged in relation to other obligations in Guyana is high.
The ratings of Pegasus are buttressed by the strong macroeconomic prospects for Guyana, which should drive demand for ‘Class A’ office space and accommodation. CariCRIS said that the hotel’s competitive advantages in brand and location, underpinned by consistently high occupancy rates, also support the ratings.
“Further, Pegasus continues to report strong cash generation and good profitability. The ratings are tempered by a need for improvement in internal management reporting, the high reliance on the promoter to drive success of the new project, along with a moderate project risk”, the agency added.
CariCRIS also maintained a stable outlook on the ratings. This outlook is based on projected revenue and profitability growth in the hotel’s operations over the next 12 to 15 months that are in line with the agency’s original expectations, and good progress with the hotel’s expansion plans for new ‘Class A’ office space in the country’s capital.
Owned by Robert Badal, the Pegasus is constructing a Suites and Office Complex (Pegasus Suites and Corporate Centre) on land adjoining the existing hotel. The project cost has been fixed at US $70 million with 43% (US $30 million) being financed by way of long-term debt and the remaining 57% (US $40 million) financed by way of the promoter’s cash equity, according to CariCRIS.
