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TransJamaican gets new Fitch rating

Fitch Ratings has assigned TransJamaican Highway Limited (TJH) proposed notes issuance of US$225 million an expected rating of ‘BB-‘  with a Stable Rating Outlook.

TJH expects to issue senior secured debt for up to US$225 million through a fully amortising bond to mature in 2036 with a fixed coupon rate.

Fitch outlined that the company rating “reflects the stability and resiliency of a commuting asset strategically located on the outskirts of Kingston, Jamaica’s capital city.”

” The asset is currently the only high-speed roadway serving the western part of Kingston’s metropolitan area, with an estimated population of 1.4 million people along the corridor.”

– Fitch Ratings

The agency outlined, “The rating is also supported by a satisfactory rate-setting mechanism, which allows tariffs to be adjusted annually by U.S. inflation and the variations in FX rate between the Jamaican Dollar (JMD) and the US Dollar (USD).”

Debt is senior secured, with typical project finance features that include limitations on additional indebtedness.

Fitch stated, “the transaction presents robust break-even values for its most important variables and no dependency on traffic growth in order to repay the rated debt.”

(Photo: Business Wire)

 Fitch describes the TJH road network as the main link between the capital city of Jamaica, Kingston, and other populated urban and industrial centres including the cities of Portmore and May Pen.

“The asset is currently the only high-speed roadway serving the western part of Kingston’s metropolitan area, with an estimated population of 1.4 million people along the corridor,” the agency outlined.

Fitch said motorisation rates in Jamaica are still low and expected to increase by 3.5 per cent per annum until 2028.

It noted, additionally, that the toll road is the largest infrastructure project in Jamaica.

Security for the bond include, among other things: (i) certain reserve accounts;  rights under certain project documents; (tangible movable property; leasehold rights; and an agreement to assign TJH’s interest in the Concession Agreement.



TJH stretches for 49.9km, connecting Kingston with May Pen, and is divided in two corridors: T1 and T2.  The T1 corridor stretches between Kingston and May Pen (with a connection through to Spanish Town), it has three toll plazas located at Spanish Town, Vineyards and May Pen.


Fitch noted that TJH acts as a major connector between business and key customers in the Island’s southern parishes.

The proceeds of the TJH bond will be used to pay existing debt, pay transaction fees and for general corporate purposes.

The ratings agency said that the final rating is contingent on the receipt of final documents materially confirming information already received.