CariCRIS upgrades its regional scale credit ratings for NCB Capital Markets Limited
Month: November 2023
NCB Capital Markets Limited
NCB Merchant Bank (Trinidad and Tobago) Limited
CariCRIS reaffirms overall ‘good creditworthiness’ ratings for NCB Merchant Bank (Trinidad and Tobago) Limited
NCB Capital Markets (Barbados) Limited
CariCRIS upgrades “adequate creditworthiness” ratings of NCB Capital Markets (Barbados) Limited
NCB (Cayman) Limited
CariCRIS reaffirms ‘good creditworthiness’ ratings for NCB (Cayman) Limited
NCB Capital Markets Limited
RATING ACTION:
On November 14, 2023, CariCRIS upgraded the assigned Issuer/ Corporate Ratings to CariA (Local Currency Rating) on the regional scale and reaffirmed 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
NCB Merchant Bank (Trinidad and Tobago) Limited
RATING ACTION:
On November 14, 2023, CariCRIS reaffirmed the assigned Issuer/ Corporate Ratings of CariA (Local and Foreign Currency Rating) on the regional scale and ttA (Local Currency Rating) on the Trinidad and Tobago national scale to NCB Merchant Bank (Trinidad and Tobago) Limited (NCB Merchant 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:
- The successful rollout of the Company’s income rebalancing strategy leading to a greater contribution to total income from its Retail and Business Banking Division to over 40%
- A reduction in the reliance on institutional funding to under 50%
- Sustained increase in profitability of 15% or more for 2 consecutive financial years
- A reduction in the exposure to the Government in the loan portfolio to 60%
Factors that could, individually or collectively, lead to a lowering of the ratings and/ or Outlook include:
- Net interest spread compression leading to a reduction in profit after tax (PAT) by greater than 15% sustained for 2 financial years
- A systematic increase in liquidity pressures in the environment, leading to funding withdrawals in excess of 50% from large institutional investors, and a worsening of short-term TT$ liquidity measures over an 18-month period
- Deterioration in the Parent’s (NCB Capital Markets Limited or NCBCML) credit rating that could materially impact the extent of credit support available to NCB Merchant
Analysts’ Contact Info:
Keith Hamlet
Mobile : 1-868-487-8356
Maxwell Gooding
NCB Merchant Bank (Trinidad and Tobago) Limited
CariCRIS reaffirms overall ‘good creditworthiness’ ratings for NCB Merchant Bank (Trinidad and Tobago) Limited
NCB Capital Markets (Barbados) Limited
RATING ACTION:
On November 14, 2023, CariCRIS upgraded the Issuer/Corporate Credit ratings assigned to NCB Capital Markets (Barbados) Limited (NCB Barbados, NCBCMBL or the Company) by 1 notch to CariBBB+ (Foreign and Local Currency Ratings) on its 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:
- Improvements in the credit risk profiles of the Government of Jamaica and/or the Government of Barbados
- Improvement in profitability over the next 12 to 15 months supported by earnings from the Eastern Caribbean region
- Successful roll-out of new services leading to further diversity in income-earning capability
- An improvement in the TNW to total assets ratio to 18%
Factors that could, individually or collectively, lead to a lowering of the ratings and/or outlook include:
- Significant deterioration in the credit risk profiles of the Government of Jamaica and/or the Government of Barbados
- Deterioration in ROEA to below 1% sustained for 2 financial years
- Deterioration in ROE to below 15% sustained for 2 financial years
- Deterioration in the TNW to total assets ratio to below 10%
- Deterioration in the ratio of total earning assets to interest-bearing liabilities to below 1 time
Analysts’ Contact Info:
Keith Hamlet
Mobile: 1-868-487-8356
Megan Dass
Mobile: 1-868-487-8356
NCB (Cayman) Limited
RATING ACTION:
On November 14, 2023, CariCRIS reaffirmed the assigned rating of CariA (Foreign and Local Currency Ratings) on the regional rating scale for NCB (Cayman) 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:
- Improved profitability over the next year as a result of higher income earned from investments and/or loans, thereby contributing to Net Profit (NP) growth of 15% or more
- A reduction in the Non-Performing Loans (NPLs) ratio to below 5%
- Increase in TNW by 15% or more for 3 consecutive years
Factors that could, individually or collectively, lead to a lowering of the ratings/or outlook include:
- A decline in investment yield leading to a contraction in the net interest rate spread to below 1% over the next 12 to 15 months
- NPLs to Gross Loans ratio of above 25% sustained for the next 12 months
- Deterioration in the credit rating of National Commercial Bank Jamaica Limited (NCBJ or the Parent of NCBKY) that could materially impact the extent of support available to NCBKY
Analysts’ Contact Info:
Keith Hamlet
Mobile : 1-868-487-4356
Sultan Mohammed
Mobile : 1-1868-362-7304
NCB Capital Markets Limited
CariCRIS upgrades its regional scale credit ratings for NCB Capital Markets Limited