RATING ACTION:

On November 4, 2022, CariCRIS reaffirmed the assigned Corporate Ratings of CariA (Foreign and Local Currency Ratings) on the regional scale and ttA on the Trinidad and Tobago national scale to TRINRE Insurance Company Limited (TRINRE or the Group). 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:

• An improvement in profit after tax of over 10% over the next 3 financial periods
• Growth in TNW by more than 17.5% or more for 3 consecutive financial periods
• Further diversification of business into other regional territories
• An improvement in the ratings assigned to the T&T sovereign

Factors that could, individually or collectively, lead to a lowering of the ratings and/ or Outlook include:

• A deterioration of the Company’s capital adequacy ratio to 150% or lower on a sustained basis for at least 6 months under normal conditions.
• A lowering of the ratings assigned to the T&T sovereign
• A lowering of the ratings of one of TRINRE’s main reinsurers
• Reduction in PAT by 10% or more for 2 consecutive financial periods
• Reduction in TNW by 20% or more for 2 financial periods

Analysts’ Contact Info:

Keith Hamlet

Mobile : 1-868-487-8356

khamelt@caricris.com

Maxwell Gooding

mgooding@caricris.com

www.caricris.com 

info@caricris.com

CariCRIS reaffirms overall ‘good creditworthiness’ ratings for TRINRE Insurance Company Limited

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RATING ACTION:

On December 15, 2022, CariCRIS reaffirmed the assigned ratings of ttA+ (National Local Currency Ratings) on the Trinidad & Tobago national scale for Home Mortgage Bank’s Collateralized Mortgage Obligation – CMO 2020-01. A stable outlook was assigned.

 RATING SENSITIVITY FACTORS:

Factors that could, individually or collectively, lead to an improvement in the ratings and /or outlook include:

• A NPL ratio below 5% sustained over the next 12 to 15 months and/ or a return to delinquency levels of 2% – 4% within the underlying mortgage pool over the next 12-15 months.
• Satisfactory repayment of Tranche C with payment flows in line with or above CariCRIS’ expectations.

Factors that could, individually or collectively, lead to a lowering of the ratings/or outlook include:

• Persistent deterioration in the mortgage pool quality with delinquency levels of above 20% and/ or NPL ratio of above 8% within the underlying mortgage pool leading to heightened extension and/ or default risk over the next 12-15 months.
• Deterioration in TTMF’s NPLs to Gross loans ratio of above 10.5% sustained for 2 financial periods.
• A deterioration in the credit risk profile of T&T leading to increased market risk
• Cashflow shortfalls from the mortgage pool that may impair payments of principals and interests.

RATING RATIONALE

The Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed the overall issue ratings assigned to the TT $300 million Collateralised Mortgage Obligation (CMO) of Home Mortgage Bank (HMB) (CMO 2020-01) of ttA+ (SO) on the Trinidad and Tobago (T&T) national scale. This rating indicates that the overall level of creditworthiness of this structured debt obligation, adjudged in relation to other rated debt obligations within T&T is good.

Analysts’ Contact Info:

Keith Hamlet

Mobile : 1-868-487-4356

khamlet@caricris.com   

Sharlene Gordon

Mobile : 1-1876-618-9811

sgordon@caricris.com   

www.caricris.com 

info@caricris.com  

 RATING ACTION:

On December 7, 2022, CariCRIS reaffirmed the overall issue rating of ttA+ (SO) on the Trinidad and Tobago (T&T) national scale to the TT $200 million Collateralised Mortgage Obligation (CMO) of Home Mortgage Bank (HMB) (CMO 2019-01). A 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 loan portfolio quality, with an NPL ratio of lower than 5% and/or a return to delinquency levels of 2% – 4% within the underlying mortgage pool over the next 12-15 months

Factors that could, individually or collectively, lead to a lowering of the rating and/or outlook:

• Persistent and further deterioration in the mortgage pool quality with delinquency levels of above 20% and/ or NPL ratio of above 8% within the underlying mortgage pool leading to heightened extension and/ or default risk over the next 12-15 months
• Deterioration in TTMF’s NPLs to Gross loans ratio of above 10.5% sustained for 2 financial periods
• Consistent cash flow shortfalls in the underlying mortgage pool over the next 12-15 months
• A deterioration in the credit risk profile of T&T leading to increased market risk

RATING METHODOLOGY

The rating methodology we followed in assigning the ratings to the CMO is consistent with that utilised by the international rating agencies for rating securitised debt/structured obligations. Further, we worked closely with an expert at CRISIL in conducting this rating, who served as a peer review for the initial assignment.

Analysts’ Contact Info:

Anelia Oudit

Mobile : 1-868-487-8364

aoudit@caricris.com   

Nadia Sanchez

nsanchez@caricris.com   

www.caricris.com 

info@caricris.com  

CariCRIS reaffirms its overall ratings for the TT $300 million Collateralised Mortgage Obligation of Home Mortgage Bank (HMB CMO 2020-01)

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CariCRIS reaffirms its overall ratings for the TT $200 million Collateralised Mortgage Obligation of Home Mortgage Bank (HMB CMO 2019-01)

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RATING ACTION:

On December 7, 2022, CariCRIS reaffirmed the Issuer/Corporate Credit ratings CariBBB- (Foreign and Local Currency Ratings) on its regional rating scale assigned to Saint Lucia Electricity Services Limited (LUCELEC or the Company). A stable outlook was maintained.

RATING SENSITIVITY FACTORS:

Factors that could, individually or collectively, lead to an improvement in the ratings and/or outlook include:

• An improvement in the credit rating of the sovereign over the next 12-15 months
• Continued improvements in economic and business conditions over the next 12 months in Saint Lucia, thereby leading to increased electricity sales

Factors that could, individually or collectively, lead to a lowering of the ratings and/or outlook include:

• A greater than 10% decline in PAT for 2 consecutive years
• The occurrence of any event risk that may lead to the financial parameters deteriorating beyond the range for the current rating level
• A change in the monopoly position afforded by regulation

Analysts’ Contact Info:

Keith Hamlet

Mobile: 1-868-487-8356

khamlet@caricris.com

Megan Dass

mdass@caricris.com

www.caricris.com   

info@caricris.com

CariCRIS reaffirms “adequate creditworthiness” credit ratings assigned to Saint Lucia Electricity Services Limited

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