Caribbean rating agency CariCRIS has reaffirmed its AA high credit-worthiness rating for Goddard Enterprises, saying a September 3 fire at one of its wholly-owned subsidiaries was unlikely to have a major impact on group performance.

Goddard's pesticide production plant, McBride Caribbean Limited, whose flagship product is BOP insecticide, was nearly destroyed by fire, leaving a supply gap in its regional market.

The administrative building and fuel tanks at Lowlands, Christ Church, in Barbados, are still standing, but its aerosol plant, canning operations and inventory were consumed.

"McBride's contribution to the group is small," said CariCRIS, adding that contribution to operating profit was under five per cent.

The plant is to be rebuilt but is not expected back online until 2009.

Goddard, a Barbados company, has interest in dozens of companies spanning the Caribbean, South and Central America.

Its interests in Jamaica cover 70 per cent ownership control of Nissan dealer Fidelity Motors — a seven-year-old joint venture with GraceKennedy Limited, which holds the other 30 per cent — as well as associations with Industrial Catering Services Limited, Versair In-Flite Services and National Rums of Jamaica.

Out of commission

Listed among its industrial catering clients is Kingston Public Hospital.

Its business interest cover airline and industrial catering, manufacturing, import and distribution.

Since the Lowlands fire, Goddard has made arrangements with its partner McBride U.K. to supply the Caribbean in the interim, but the fire has cost the Barbados subsidiary its contract with SC Johnson in the United States, by invocation of force majeure.

McBride Caribbean is expected to be out of commission for a year and a half, but CariCRIS, in reaffirming its outlook on parent Goddard, said the subsidiary contributes only 4.8 per cent of before-tax profit, and represents 4.0 per cent of operating assets, according to 2006 figures.

Goddard made pre-tax profit of B$45 million in its financial year ending September 30, 2006. The company is carrying more than B$39 million (US$19.5 million) in long-term debt.

lavern.clarke@gleanerjm.com

Ratings for Goddard Enterprises Limited

Foreign currency CariAA-

Local currency CariAA