CariCRIS Reaffirms ‘Good Creditworthiness’ Ratings of Seprod, Outlook Negative

• On October 15, 2025, Caribbean Information and Credit Rating Services Limited (CariCRIS) reaffirmed the corporate credit ratings for Seprod Limited (Seprod or the Group). The ratings assigned are CariA (Local Currency Rating) on the regional scale, jmAA- (Local Currency Rating), and jmA+ (Foreign Currency Rating) on the Jamaica national scale. The CariA and jmA+ ratings indicate that Seprod's creditworthiness is good compared to other issuers in the Caribbean and Jamaica, while the jmAA- rating indicates that Seprod’s creditworthiness is high relative to other issuers in Jamaica.
• However, CariCRIS assigned a negative outlook on Seprod’s ratings. The negative outlook reflects the high likelihood that Seprod’s financial flexibility will remain constrained over the next 12-15 months. This is underpinned by Seprod’s increasing debt levels needed to support acquisition-led growth and meet working capital requirements.
• As a result, Seprod’s effective debt servicing coverage ratio (DSCR) is likely to remain challenged. However, if the Group successfully refinances its near-term obligations, it is expected that Seprod’s debt servicing ratios will improve. Despite these challenges, the Group is projected to maintain profitable operations and comfortably service its debt in a timely manner over the next 12 to 15 months.
• Factors that could individually or collectively lead to a decrease in the rating or outlook for Seprod include a decline in the credit rating of the Government of Jamaica over the next 12 to 15 months; a sustained reduction in the Profit after Tax (PAT) margin below 3% for two consecutive years (2.5% for FY2024); or the Group's effective DSCR remaining below 1 for another year.
• That said, Seprod’s ratings are supported by its strong market position, underpinned by a diversified portfolio of products and a well-established distribution network across the Caribbean. The Group’s solid financial performance continues to reinforce the ratings, despite persistently constrained debt protection metrics and lower profitability reported (-42.03% YoY) in 2024.
• Overall, the ratings reflect Seprod’s integrated business model and robust corporate governance practices, backed by a competent management team. However, ongoing global economic uncertainty poses potential risks to earnings and profitability, despite generally favourable economic conditions in its primary markets.

(Sources: CariCRIS & NCBCM Research)