CariCRIS reaffirms “adequate creditworthiness” ratings for LUCELEC

Monday, December 20, 2010 – Caribbean Information and Credit Rating Services Limited (CariCRIS), the Caribbean regional credit rating agency, has reaffirmed the ratings of CariBBB (Foreign Currency Rating) and CariBBB (Local Currency Rating) on its regional rating scale to the national debt issue of the size of USD 15 million of Saint Lucia Electricity Services Limited

(LUCELEC). These ratings indicate that the level of creditworthiness of this obligation, adjudged in relation to other obligations in the Caribbean1, is adequate.

The ratings on LUCELEC continue to reflect the company’s monopoly position in Saint Lucia, healthy financial profile and favourable operating efficiency. The ratings on LUCELEC are constrained by the creditworthiness of its sovereign as its operation is solely in the Saint Lucian economy. The demand for LUCELEC’s services is cyclical in nature, reflecting the economic cycle of the sovereign. Further tempering the ratings are its indirect exposure to fuel prices and the risks of production outages and damage to property that result from its single location generation plant and self-insurance for its transmission and distribution infrastructure.

On the regional scale, LUCELEC’s ratings are significantly influenced by Saint Lucia’s relative credit standing within the Caribbean, rated CariBBB+ (Foreign Currency Rating) by CariCRIS on the Caribbean regional rating scale. Going forward LUCELEC’s credit profile will be dependent upon its ability to undertake debt funded capital expenditure without impairing performance indicators and any changes to the governing legislation that would adversely impact its operations.

The term Caribbean as used here covers the following countries: Bahamas, Barbados, Belize, Costa Rica, Dominican Republic, Guyana, Haiti, Jamaica, Panama, Suriname, Trinidad and Tobago and the following countries in the OECS: Anguilla, Antigua & Barbuda, Dominica, Grenada, Montserrat, St. Kitts & Nevis, Saint Lucia and St. Vincent & the Grenadines. Refer www.caricris.com for a more detailed explanation on CariCRIS ratings and rating definitions.

About the company:

Saint Lucia Electricity Services Ltd (LUCELEC) was established on November 9, 1964, as

a private limited liability company with the purpose of power generation, distribution and dealing in electricity and electromotive force and energy. On August 22, 1994 the company moved towards public ownership. At present, the top five shareholders are Emera Inc (20%), First Citizen Bank Limited (20%), National Insurance Corporation (16.79%), Castries City Council (16.36%) and Government of Saint Lucia (12.44%). LUCELEC has an exclusive license to generate, distribute and sell electricity in Saint Lucia up to the year 2045.

The company presently operates one power station at Cul de Sac and seven sub-stations, linked by a 66 kilo volt (kV) transmission network. The power station, which was commissioned in 1990, now houses nine generating units, with a total installed capacity of 76 mega watt (MW).

Note: Mr. Marius St. Rose resigned as the Chairman of the Board of LUCELEC in December 2009 and is a member of CariCRIS Rating Committee. Mr. St. Rose did not participate in the above rating decision.

Please visit www.caricris.com for the detailed rating rationale on LUCELEC Or contact:

Arjoon Harripaul Shivana R. Khan

Head - Ratings, CariCRIS Research Associate, CariCRIS

Tel: 1-868-627-8879 Ext. 227 Tel: 1-868-627-8879 Ext. 235

E-mail: aharripaul@caricris.com E-mail: skhan@caricris.com

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