More Jamaican companies and entities are now on Ratings Watch Negative by global credit ratings agencies Moody's and Fitch, raising the risk of future downgrades in the coming months.
A ratings watch negative signal means the current credit rating is under review and could be cut, which would likely translate into higher borrowing costs, increased interest payments and possible cash flow pressures for the affected companies.
Fitch says it has placed Montego Bay Airport Revenue Finance on ratings watch negative in relation to its US$400 million bond.
This follows a similar move on NCB Financial Group and National Commercial Bank Jamaica.
The agency says the actions are tied to the impact of Hurricane Melissa on the airport's infrastructure and uncertainty about future visitor arrivals and, by extension, the entity's capacity to service its debts without cash flow difficulties.
Meanwhile, Moody's has revised its outlook on MOAIR and KINGAIR, the special purpose vehicles that borrowed against revenues from Norman Manley International Airport from stable to negative.
Moody's says the shift reflects hurricane related damage and the strong likelihood of a prolonged decline in visitor arrivals and revenues. However, it has maintained the vehicles' existing BA3 junk bond rating.
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