Dominica Agricultural, Industrial and Development Bank

RATING ACTION:

On June 15, 2023, CariCRIS reaffirmed the ratings currently assigned to the US $10 Million debt issue (notional) of Dominica Agricultural, Industrial and Development Bank (DAID or the Bank) at CariB (Foreign and Local Currency Ratings) on the regional rating scale. 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:

An upgrade to the sovereign credit rating of the GOCD
Improvement in the NPL ratio to less than 16%
Adherence to the EIB’s revised financial covenants
Sustained profitable operations for more than 2 financial periods
Progress in the implementation of the Bank’s ERM framework

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

A change in the sovereign credit rating of the GOCD
Sustained NPL ratio of 45% or more over for the next 12 – 15 months
Further delay in the full implementation of the Bank’s Enterprise Risk Management Framework
Any loss of major funding lines without identification of a suitable alternative
A decline in TNW coverage of net NPLs to less than 1 time over the next 12 – 15 months
A fall in the Bank’s capital adequacy ratio to less than 25% over the next 12 – 15 months

Analysts’ Contact Info:

Keith Hamlet

Mobile: 1-868-487-8356

khamlet@caricris.com

Sharlene Gordon

Phone : 1-876-618-9811

sgordon@caricris.com

www.caricris.com

info@caricris.com

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.

JMMB International Limited

RATING ACTION:

On June 15, 2023, CariCRIS reaffirmed the assigned rating of jmA (Foreign Currency Rating) on the Jamaica national scale to the US $160 million bond issue of JMMB International Limited. 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:

An improvement in the GOJ’s credit rating over the next 12-15 months
An improvement in the credit rating of JMMBIL’s parent JMMB Group Limited
Growth in PAT of 15% or more for 3 consecutive years
Growth in TNW by greater than 15% for 3 consecutive years

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

A deterioration in the GOJ’s credit rating over the next 12-15 months
A lowering of the ratings of JMMBIL’s parent, JMMB Group Limited
Breach of any of the bond covenants including a deterioration below the capital regulatory requirements of any of the operating subsidiaries in their respective jurisdictions
Failure of JMMBGL to fulfil its role as guarantor if called upon to do so
Decline in PAT of 15% or more for 3 consecutive years
Decline in TNW by greater than 15% for 3 consecutive years

Analysts’ Contact Info:

Keith Hamlet

Mobile: 1-868-487-8356

khamelt@caricris.com

Sharlene Gordon

Phone: 1-876-618-9811

sgordon@caricris.com

www.caricris.com

info@caricris.com

Dominica Agricultural, Industrial and Development Bank

CariCRIS reaffirmed its ratings for Dominica Agricultural, Industrial and Development Bank

JMMB International Limited

CariCRIS reaffirms overall ‘good creditworthiness’ ratings to bond issue of US $160 million of JMMB International Limited

RATING ACTION:

On July 26, 2023, CariCRIS reaffirmed the assigned Issuer/Corporate Credit Ratings of CariBBB- (Foreign and Local Currency Ratings) on the regional rating scale, and jmBBB+ (Foreign and Local Currency Ratings) on the Jamaica national scale to Sygnus Credit Investments Limited (SCI or the Company). A stable outlook was assigned.

RATING SENSITIVITY FACTORS:

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

Improving business conditions over the next 12-15 months, thereby leading to growth in client base and sustained earnings growth
Further diversity in asset class through the successful launch of new products
SCI’s ability to attract and retain lower cost funding

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

Deterioration of asset quality as measured by the ratio of non-performing notes to gross notes to 8% or more
Increase of SCI’s debt to TNW and/or total debt to total assets ratio to over 1.25 times or above 50% respectively for 2 consecutive financial years
Cost to Income ratio weakens to 50% and over
A sustained decrease in yield from average interest earning assets to less than 8.5% and/or a rise in funding costs to over 8.3%, thereby leading to a tightening of the net interest spread earned on investments for 2 consecutive financial years