Mystic Mountain Limited (MML) Rating Suspended
Month: November 2022
Mystic Mountain Limited (MML)
Proven Group Limited
RATING ACTION:
On November 3, 2022, CariCRIS reaffirmed the assigned ratings of CariBBB (Foreign and Local Currency Ratings) on the regional rating scale, and jmA (Foreign and Local Currency Ratings) on the Jamaica national scale to PROVEN Group Limited (PROVEN or the Group). The stable outlook was maintained.
RATING SENSITIVITY FACTORS:
Factors that could, individually or collectively, lead to an improvement of the rating and/or outlook:
- An improvement in the GOJ’s credit rating over the next 12-15 months
- An improvement in operating profit greater than 20% for 2 consecutive years
- Cost to Income ratio improves to 75% and below
- Improvement of asset quality ratio to below 8%
Factors that could, individually or collectively, lead to a lowering of the rating and/or outlook:
- Economic environment negatively impacting revenue streams leading to losses
- Increase of PROVEN’s stand-alone debt to equity ratio to above 2 times
- A systemic increase in liquidity pressures in the environment leading to funding withdrawals from large institutional investors
- Deterioration of asset quality ratio to over 12%
- Cost to Income ratio weakens to 75% and over for another year
- A deterioration in the GOJ’s credit rating over the next 12-15 months
RATING RATIONALE
Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed the Corporate Credit Ratings of CariBBB (Foreign and Local Currency) on the regional rating scale, and jmA on the Jamaica national scale to PROVEN Group Limited (PROVEN or the Group). The regional scale ratings indicate that the level of creditworthiness of this obligor, adjudged in relation to other obligors in Jamaica and the wider Caribbean is adequate. The national scale ratings indicate that the level of creditworthiness of this obligor, adjudged in relation to other obligors in Jamaica is good.
CariCRIS has also maintained a stable outlook on the ratings. The stable outlook is premised on our expectation that PROVEN will continue to have profitable operations over the next 12-15 months supported by the Group’s recent acquisitions of Roberts Manufacturing Company Limited[1] (RMCL), PROVEN Bank (Cayman) Limited[2] (PBL) and Heritage Education Fund Limited[3] (HEFL) as well as its 20% equity interest in JMMB Group Limited (JMMBGL)[4]. Notwithstanding this, the global geopolitical environment and significant inflation concerns which have resulted in aggressive interest rates hikes, can challenge the Group’s overall financial performance over the next 12-15 months.
Analysts’ Contact Info:
Anelia Oudit
Mobile : 1-868-487-8364
Jeffrey James
Disclaimer: CariCRIS has taken due care and caution in compilation of data for this product. Information has been obtained by CariCRIS from sources which it considers reliable. However, CariCRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. No part of this report may be published / reproduced in any form without CariCRIS’ prior written approval. CariCRIS is also not responsible for any errors in transmission and especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of this product.
Proven Group Limited
CariCRIS reaffirms ‘adequate creditworthiness’ ratings for PROVEN Group Limited
Mystic Mountain Limited (MML)
Mystic Mountain Limited (MML) Rating Suspended
Caribbean Information & Credit Rating Services Limited (CariCRIS) has today suspended its rating on Mystic Mountain Limited (MML or the Company). In September 2020, MML defaulted on its J $1.1 billion bond issue and to date, the entity remains in default of this obligation. In February 2022, the Company declared bankruptcy and is currently in receivership. As a result, MML’s rating will no longer be kept under annual surveillance by CariCRIS and there will be no further updates on this rating.
25 November 2022
Eastern Credit Union Co-operative Society Limited (ECU)
Further to our Rating Watch issued on 17 August 2022, Caribbean Information & Credit Rating Services Limited (CariCRIS) has today suspended its ratings on Eastern Credit Union Co-operative Society Limited (ECU). As a result, ECU’s ratings will no longer be kept under annual surveillance by CariCRIS and there will be no further updates on these ratings.
21 November 2022
Eastern Credit Union Co-operative Society Limited (ECU)
ECU no longer rated by CariCRIS
NCB Capital Markets Limited
CariCRIS reaffirms overall ‘good creditworthiness’ ratings for NCB Capital Markets Limited
NCB Capital Markets Limited
RATING ACTION:
On November 3, 2022, CariCRIS reaffirmed the assigned Issuer/ Corporate Ratings of CariA- (Local Currency Rating) on the regional scale and jmAA- (Local Currency Rating) on the Jamaica national scale to NCB Capital Markets Limited (NCBCML or the Company). A stable outlook was maintained.
RATING SENSITIVITY FACTORS:
Factors that could, individually or collectively, lead to an improvement of the ratings and/ or Outlook include:
- Improving profitability by 10% or more for 2 consecutive periods as a result of higher income earned from its asset management and investment banking segments
- Improvement in 1-year Liquidity Gap ratio to 35% or better for two consecutive years
- Improvement in the GoJ’s credit rating leading to an improved credit risk profile of NCBJ
- Growth in TNW by 15% or more for 2 consecutive financial periods
Factors that could, individually or collectively, lead to a lowering of the ratings and/ or Outlook include:
- Worsening of NCBCML’s short-term J$ liquidity measures over a 24-month period
- A downgrade in the GoJ’s credit rating leading to a deteriorated credit risk profile of NCBJ
- A reduction in NCBCML’s capital adequacy ratio to below the Systematically Important Financial Institution (SIFI) regulatory minimum of 14%
- A Reduction in PAT by 15% or more for 2 consecutive financial periods
- A contraction in TNW by 17.5% or more for 2 consecutive financial periods
Analysts’ Contact Info:
Keith Hamlet
Mobile : 1-868-487-8356
Maxwell Gooding
The Jamaica National Group Limited
CariCRIS assigns “adequate creditworthiness” ratings to The Jamaica National Group Limited
The Jamaica National Group Limited
RATING ACTION:
On October 25, 2022, CariCRIS assigned the Issuer/Corporate Credit ratings CariBBB+ (Foreign Currency Rating) and CariA- (Local Currency Rating) on its regional rating scale and jmA+ (Foreign Currency Rating) and jmAA- (Local Currency Rating) on its Jamaica national scale to The Jamaica National Group Limited (JNGL or the Company). A stable outlook was also assigned.
RATING SENSITIVITY FACTORS:
Factors that could, individually or collectively, lead to an improvement in the ratings and/or outlook include:
- Expansion of the Group’s product and service offerings and/or improvements in operating efficiencies, leading to a sustained increase in PAT of 10% or more for more than 2 years
- Improvement in the credit rating of the Government of Jamaica, leading to an improved sovereign risk profile
- Improvement in the Group’s cost to income ratio to 65% or below for at least 2 consecutive years
- Improvement in the Group’s NPLs to gross loans to below 2.8%
- Improvement in the Group’s TNW to total adjusted assets to 20% or above
Factors that could, individually or collectively, lead to a lowering of the ratings and/or outlook include:
- A greater than 10% decline in the Group’s total income for 2 consecutive years
- Deterioration in the credit rating of the Government of Jamaica, leading to a worsened sovereign risk profile
- Deterioration in the Group’s TNW to total adjusted assets to 8% or below
- Deterioration of any of the Group’s subsidiaries’ capital adequacy ratios below regulatory requirements
- An increase in the Company’s gearing ratio to above 3 times
Analysts’ Contact Info:
Keith Hamlet
Mobile: 1-868-487-8356
Megan Dass