– to reflect ‘strong macroeconomic prospects’

AGAINST the backdrop of strong macroeconomic prospects here, the Caribbean Information and Credit Rating Services Limited (CariCRIS) has raised the national scale rating of the Guyana Pegasus to gyAA+.

According to a release from the regional credit rating agency , the macroeconomic prospects for Guyana is expected to drive the demand for ‘Class A’ office space and accommodation that is to be provided by the new Pegasus Suites and Corporate Center, which is under construction by Chinese firm , China Harbour and Engineering Company (CHEC).

The body said that the Guyana national scale rating indicates that the level of creditworthiness of this obligation adjudged in relation to other obligations in Guyana is high. “The uplift of the regional foreign currency rating is based on our internal assessment of improved creditworthiness of Guyana’s sovereign risk over the last 12 months,” the agency said.

It was noted that the hotel’s strong brand equity and stable occupancy rates at its Kingston location, as well as its good financial performance with stable revenues and increasing operating cash flows, also support the ratings. “These rating strengths are tempered by the high reliance on the promoter to drive the success of the new project,” the agency said.
In March this year , CEO of the Pegasus , Robert Badal stated at the launch of the US$100M expansion project that the feat entails the construction of two high rise structures which will house first world quality office, living spaces and all the services of a first class hotel.

CariCRIS said in its release that the moderate project risk that characterises this new project, together with the existence of room for improvement in internal management reporting and governance arrangements, also temper the ratings.

“CariCRIS maintained a stable outlook on the ratings. The stable outlook is based on our expectation of continued revenue and profitability growth in the hotel’s operations over the next 12 to 15 months,” the agency stated.

The hotel was established in 1969 by British Overseas Airways Corporation (BOAC), now known as British Airways (BA), to house its staff operating on flights into Guyana.
Badal purchased the property in 2009 through his holding company, Sahara Investment Incorporated. The holding company owns 97 per cent of Pegasus while 3% is owned by the National Insurance Scheme (NIS) of Guyana.

Badal then embarked on substantial renovation and upgrade to the property over the ensuing years. Pegasus is now considered a premier hotel in Guyana and a market leader with a strong brand both regionally and internationally. The hotel consists of 130 rooms comprising of three suites, 33 luxury rooms and 94 standard rooms, as well as three restaurants. With three conference rooms and a ballroom, Pegasus is used extensively for conferences, business meetings, corporate retreats, weddings and Christmas parties.