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 |
Read the Full Analysis

