RATING ACTION:

On August 11, 2023, CariCRIS assigned initial issuer/corporate credit ratings of CariBBB+ (Local Currency Rating) and CariBBB (Foreign Currency Rating) on the regional rating scale, and jmA (Local Currency Rating) and jmA- (Foreign Currency Rating) on the Jamaica national scale for Cornerstone Financial Holdings Limited (CFHL or the Company). 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 credit risk profile of the Government of Jamaica over the next 12-15 months.
• An improvement in the credit risk profile of BIL over the next 12-15 months
• Further diversity in revenue streams and asset class through the completion of its restructuring exercise and/or addition of investment grade and above assets sustained over the next 2 years.
• Successful acquisitions over the next 12 to 15 months with a concomitant material improvement in the respective segment’s market share.
• Further enhancements to its overall corporate governance structure inclusive of independent directors on the Board.

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

• A deterioration in the credit risk profile of the Government of Jamaica.
• A deterioration in the credit risk profile of BIL over the next 12-15 months.
• A significant decline in the performance of BIL resulting in a material and sustained fall in CFHL’s income that adversely impacts its risk absorbing capacity.
• Increase in the debt/TNW and total debt to total assets ratios over the internal limits of 2 times and 75% respectively.
• Inability of CFHL’s portfolio companies to meet capital adequacy regulatory requirements in the Jamaica financial services industry following its re-organization exercise.

Analysts’ Contact Info:

Anelia Oudit

Mobile : 1-868-487-8364

aoudit@caricris.com

Jeffrey James

jjames@caricris.com

www.caricris.com 

info@caricris.com  

CariCRIS assigns Corporate Credit ratings to Cornerstone Financial Holdings Limited (CFHL)

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CariCRIS lowers NiQuan’s Ratings

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RATING ACTION:

On October 4, 2023, CariCRIS assigned the Issuer/Corporate Credit ratings srA (Foreign Currency Rating) and srA+ (Local Currency Rating) on its Suriname national scale to Finabank N.V. (Finabank or the Bank). 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:

• Improvement in the Government of Suriname’s (GOS’) credit risk profile, leading to an improved economic and business environment for Finabank
• Retail deposits ≥ 40% of funding base
• A greater than 100% increase in Profit After Tax (PAT) sustained for 2 consecutive financial years
• Improvement in Tangible Net Worth (TNW) to total adjusted assets to 12% or above sustained for 2 consecutive financial years

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

• Deterioration in the GOS’ credit risk profile, leading to a worsened economic and business environment for Finabank
• The deterioration of the gross Non-Performing Loans (NPLs) to gross loans ratio to 5% or more, leading to reduced earnings and increased provisioning, thereby affecting profitability
• Cost to income ≥ 50% sustained for 2 consecutive financial years
• A greater than 10% decline in total income sustained for 2 consecutive financial years
• The occurrence of any factors that may contribute to the deterioration of the Capital Adequacy Ratio (CAR) below the 10% minimum requirement for the Bank

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 assigns “good creditworthiness” ratings to Finabank N.V.

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RATING ACTION:

On September 14, 2023, CariCRIS reaffirmed the Issuer/Sovereign Credit ratings CariAA (Foreign and Local Currency Ratings) on its regional rating scale assigned to the Government of the Republic of Trinidad and Tobago (GORTT). 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:

• A decrease in total general government debt to below 65% of GDP over the next 12 months
• A sustained improvement in debt servicing capability to above 7 times over 2 consecutive years
• A fiscal surplus in excess of 3% of GDP sustained over 2 consecutive years
• A rise in import cover to 12 months or more over the next 24 months

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

• An increase in total general government debt to above 100% of GDP over the next 12 months
• A sustained deterioration in debt servicing capability to below 3 times over 2 consecutive years
• A fiscal deficit in excess of 10% of GDP sustained over 2 consecutive years
• A fall in import cover to 6 months or less over the next 12 months
• Annual economic contraction of greater than 2% over the next 2 years

Analysts’ Contact Info:

Stefan Fortuné

Phone: 1-868-799-6751 (m)

sfortune@caricris.com

Megan Dass

mdass@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.

CariCRIS reaffirms “high creditworthiness” ratings of the Government of the Republic of Trinidad and Tobago

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RATING ACTION:

On September 14, 2023, CariCRIS reaffirmed the assigned ratings of CariA- (Foreign and Local Currency Ratings) on the regional rating scale for Eastern Caribbean Home Mortgage Bank. 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:

• Rising profit margins and sustained earnings growth for ECHMB over the next 3 years
• Further diversity in income streams through the successful launch of new products, investments, and services
• Further diversity in its funding to include sources from outside the OECS region.
• Strengthening of its capitalization level to above 20%
• A 20% improvement in PAT for 2 consecutive years

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

• A significant tightening of the net interest spread below 1% earned on investments and a material decline in profitability of 10% sustained for 2 financial periods
• The Company’s Tangible Net Worth to Total Assets remaining below 12% for the next financial year
• A further deterioration in PAT by more than 20% for 2 more consecutive years

Analysts’ Contact Info:

Keith Hamlet

Mobile: 1-868-487-4356

khamlet@caricris.com

Sultan Mohammed

Mobile : 1-1868-362-7304

smohammed@caricris.com

www.caricris.com 

info@caricris.com

CariCRIS reaffirms ‘good creditworthiness’ ratings for Eastern Caribbean Home Mortgage Bank

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RATING ACTION:

On September 14, 2023, 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.

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

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.