S&P affirms Caribbean Utilities

Standard & Poor's said it affirmed its A long-term corporate credit and senior unsecured debt ratings on Cayman Islands-based electric utility Caribbean Utilities Co. Ltd.

At the same time, the ratings were removed from CreditWatch with negative implications, where they were placed March 4 due to regulatory uncertainty and the potential delay in the company's financial recovery following Hurricane Ivan, which struck the Cayman Islands in September 2004.

The outlook is negative.

S&P said the ratings on the company reflect the company's monopoly position, growing market, existing supportive license arrangement, and generally strong financial profile. Offsetting these strengths are uncertainty surrounding the company's future license arrangement and the operational and financial risk associated with the region's susceptibility to hurricanes.

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