CariCRIS assigns overall ‘adequate creditworthiness’ ratings to PanJam
CariBBB+ (Regional Scale Foreign Currency)
CariBBB+ (Regional Scale Local Currency)
jmAA- (National Scale Foreign Currency)
jmAA- (National Scale Local Currency
Caribbean Information and Credit Rating Services Limited (CariCRIS) assigned initial Corporate Credit Ratings of CariBBB+ (Foreign and Local Currency) on the regional rating scale, and jmAA- on the Jamaica national scale to PanJam Investment Limited (PanJam). The regional scale ratings indicate that the level of creditworthiness of this obligor, adjudged in relation to other obligors in Jamaica and the wider Caribbean is adequate. The national scale ratings indicate that the level of creditworthiness of this obligor, adjudged in relation to other obligors in Jamaica is high.
CariCRIS also assigned a stable outlook on the ratings. The stable outlook is premised on CariCRIS’ expectation of continued good financial performance over the next 12 to 15 months, underpinned by higher rental and investment income as well as improved financial performance of PanJam’s associated companies.
The ratings of PanJam reflect the Company’s strong competitive position in property management supported by its good asset quality and diversified real estate portfolio, as well as the high occupancy levels which underpin good revenue growth and the Company’s track record of profitable operations. PanJam’s adequate liquidity and debt servicing capability, together with its seasoned management team and strong Board of Directors also support the ratings. These rating strengths are tempered by PanJam’s high reliance on dividend income from its associated company investments to repay debt, as well as the downside sovereign risk from Jamaica’s high though improving, debt burden.
ABOUT THE COMPANY
PanJam Investment Limited (PanJam) is an investment holding company, incorporated and domiciled in Jamaica and listed on the Jamaica Stock Exchange (JSE).
PanJam engages in a wide range of real estate activities, takes actively-managed positions in public and private companies, and trades equities and fixed income assets for its proprietary portfolio. The Company’s income consists mainly of rental and management fees from its property holdings, as well as dividends, interest income and other fee income earned from its subsidiaries and other financial investments.