Sun | Feb 16, 2020

PanJam gets strong rating in first ever CariCRIS ranking

Published:Sunday | January 13, 2019 | 12:00 AMSteven Jackson
The former Oceana hotel on the Kingston waterfront was acquired by PanJam and parner Downing Street for $385 million. It's now referred to as Caribbean Place.

PanJam Investment has declined to say whether it will raise funds in the short term amid its first-ever rating by regional rating agency Caribbean Information and Credit Rating Services Limited (CariCRIS).

"We intend to be rated going forward regardless of our fundraising activities," stated PanJam in response to Financial Gleaner queries on whether the rating was a precursor to new fundraising ventures.

CariCRIS gave the conglomerate a strong rating and outlook. The outlook remains strong bolstered by its high rental income and occupancy along with strong dividend income, the agency said.

"CariCRIS also assigned a stable outlook on the ratings. The stable outlook is premised on CariCRIS' expectation of continued good financial performance for PanJam 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," added CariCRIS about the conglomerate.


Corporate Credit Ratings


The rating agency 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.

CarCRIS stated that the regional scale ratings indicate the level of creditworthiness of the company in relation to its Caribbean peers. The national scale ratings indicate the level of creditworthiness of its peers in Jamaica, it added.

Total assets held by PanJam as at September 30, 2018, equated to $45.3 billion, or 15 per cent higher over December 2017, while its stockholders' equity increased 9.0 per cent to $33.1 billion compared with December 2017.

The ratings of PanJam reflect the conglomerate's strong competitive position in property management supported by its good asset quality and diversified real estate portfolio, CariCRIS said.

"Also supporting the ratings are the company's track record of profitable operations and high occupancy levels, which underpin good revenue growth," said the agency, which added that PanJam operates with adequate liquidity, manageable debt levels, and a strong management team.

PanJam made $1.9 billion for its September 2018 third-quarter, or 59 per cent year on year, due to higher investment income during the quarter related to higher unrealised and foreign exchange gains, according to PanJam in its financials.