National Gas Company of Trinidad & Tobago Report

Recommendation

Given the underlying economics surrounding National Gas Company of Trinidad &Tobago (NGCTT) and the current state of the sovereign in which it operated we rate this bond as marketweight. The credit rating of NGCTT is capped and highly correlated with that of the sovereign of Trinidad & Tobago which is currently facing weak macroeconomic factors. But, the monopolistic nature of the operations, the strong balance sheet and high liquidity levels (more cash then debt) and significance of the business to the overall Oil & Gas industry in T&T makes it an attractive investment opportunity for investors with a high-risk profile.

Industry Energy
Bond Name NGCTT6.05% 2036
Credit Rating (Moody’s/S&P) Ba1/BBB
Maturity January 15th, 2036
Issue Size US$400 Mn
Rank Sr. Unsecured
Current Price (December 10th , 2020) (Source: Bloomberg) US$106.49/US$107.20 (Bid/Ask)
Yield to Maturity 5.41%/5.34% (Bid/Ask)
Recommendation Marketweight

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