TRINIDAD-Chamber cautious regarding NGC’s withdrawal from Moody’s

PORT OF SPAIN, Trinidad, CMC – The Trinidad and Tobago Chamber of Industry and Commerce (T&T Chamber) says. At the same time, it acknowledges the National Gas Company’s (NGC) decision to discontinue its relationship with the US-based rating agency, Moody’s. It stresses the importance of transparency, consistency, and investor confidence, particularly in relation to state enterprises and national economic interests.

In a statement, the private sector group said that NGC is entitled to make commercial decisions regarding its rating relationships, noting also that credit ratings play a key role in shaping perceptions among investors, lenders, and international stakeholders, and that any changes to rating relationships will naturally attract scrutiny and public interest.

“The key issue is not solely which agency is retained, but whether there remains sufficient independent international oversight, credible disclosure of financial performance, and continued adherence to sound governance and fiscal management practices,” it added.

Last week, the NGC, which is 100 percent state-owned, confirmed it had discontinued its relationship with Moody’s Investors Service as part of a realignment of its external credit rating framework.

The company made the announcement only after the rating agency said it had withdrawn its ratings of NGC, including its Ba2 corporate family rating, Ba2 baseline credit assessment, and Ba2 senior unsecured notes, following “inadequate information to monitor the ratings, due to the issuer’s decision to cease participation in the rating process.”

It said the outlook on the ratings had been negative before withdrawal.

Former prime minister Stuart Young had said the withdrawal is “a very worrying and serious red flag.” He claimed the development has “global implications” and “will also negatively affect Trinidad and Tobago’s sovereign rating”.

But in its statement, NGC said it has historically maintained multiple credit ratings, including assessments from Moody’s Investors Service, S&P Global Ratings, and CariCRIS since 2005, and more recently adopted a two-international-agency approach.

The company said the review assessed the alignment of its credit rating framework with its financial profile, operating performance, and long-term strategic objectives.

NGC said it does not consider its previously assigned sub-investment-grade rating by Moody’s to be an accurate reflection of its standalone credit profile, adding that its financial position, operating model, and risk characteristics are more consistent with investment-grade standing.

It said other international rating agencies have assigned it higher ratings than Moody’s. The T&T Chamber said that credit ratings are independent opinions and that differences between issuers and rating agencies on methodology are not unusual.

The private sector group said it is encouraging NGC to support market confidence by continuing to publish audited financial statements promptly and by providing robust disclosure to its remaining rating agencies and bondholders.

It also urged the government, as the ultimate shareholder, to continue addressing the macroeconomic concerns raised by both Moody’s and S&P, including foreign-exchange reserves, fiscal trajectory, and energy-sector performance, which it said affect all businesses operating in Trinidad and Tobago.

The private sector reiterated that good governance, transparency, and continued dialogue between government, state enterprises, and the business community remain important to sustaining investor confidence in the country.