CariCRIS lowers NiQuan’s Ratings

Caribbean Information & Credit Rating Services Limited (CariCRIS), the region’s credit rating agency, has today lowered the assigned issuer/corporate credit ratings of NiQuan Energy Trinidad Limited (NiQuan or the Company) to CariB (Foreign and Local Currency Ratings) on the regional rating scale and ttB on the Trinidad and Tobago (T&T) National Scale as well as jmB on the Jamaica National Scale. These ratings indicate that the level of creditworthiness of this obligor, adjudged in relation to other obligors in the Caribbean and within T&T and Jamaica is weak. 

The lowering of the assigned ratings reflect (i) NiQuan’s inability to attain full commercial operations at the nameplate capacity by September 30, 2023 (identified as a factor that could lead to a lowering of the rating in our March 2023 report) and (ii) the termination of the gas sales contract (GSC) by Trinidad and Tobago Upstream Downstream Energy Operations Company Limited (TTUDEOCL) and which has become subject to legal proceedings by NiQuan.

CariCRIS notes the considerable progress made by NiQuan in achieving a proven plant producing zero sulphur diesel and naphtha and have transferred 15,000 barrels of product to its off-taker, Paria Fuel Trading Company Limited. We will consider revising its ratings upward upon the successful resumption of a long-term GSC, together with successful refinancing of the existing Short-Term Note Instruments (STNI) into a longer-term facility. We may, however, further lower the ratings if the STNI is not refinanced or extended by December 31, 2023, or if any other credit negative events occur before that date.

October 24, 2023

RATING ACTION:

On September 20, 2024, CariCRIS reaffirmed the Issuer/Corporate Ratings assigned to NCB Merchant Bank (Trinidad and Tobago) Limited (NCB Merchant or the Company) at CariA (Local and Foreign Currency Ratings) on the regional scale and ttA (Local Currency Rating) on the Trinidad and Tobago national scale. 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 1 financial year
• 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
khamelt@caricris.com

Maxwell Gooding
mgooding@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 for ANSA Merchant Bank Limited (AMBL Group)

Read More

RATING ACTION:

On September 20, 2024, CariCRIS reaffirmed the issuer/corporate credit ratings of CariAA (Foreign and Local Currency Ratings) on the regional rating scale, and ttAA on the Trinidad and Tobago (T&T) national scale for ANSA Merchant Bank Limited (AMBL Group). 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:

• Improvement in the credit rating of the Government of Trinidad and Tobago
• Successful acquisitions over the next 12 to 15 months with a concomitant material improvement in any of its main segments’ market share and AMBL Group’s overall financial performance
• Material improvement in the financial performance and position of ANSA McAL Limited

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

• 2 years of sustained losses
• Greater than 20% increase in insurance service expense and/or a more than 50% fall in net interest income (NII) thus negatively impacting profitability
• Downgrade in the rating of the Government of Trinidad and Tobago
• Material deterioration in the financial performance and position of ANSA McAL Limited

Analysts’ Contact Info:

Anelia Oudit
Mobile : 1-868-487-8364
aoudit@caricris.com

Jeffrey James
Mobile : 1-868-713-5987
jjames@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 ‘good creditworthiness’ ratings of The Beacon Insurance Company Limited

Read More

 RATING ACTION:

On September 20, 2024, CariCRIS reaffirmed the Issuer/Corporate Credit Ratings assigned to The Beacon Insurance Company Limited (Beacon or the Company) at CariA- (Foreign and Local Currency Ratings) on the regional scale, and ttA- (Local Currency Rating) on the Trinidad and Tobago national scale. 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 market share of general insurance products in Beacon’s largest market to 10% or more
• Enhancement of Beacon’s systems and procedures through improved risk management practices via full Enterprise Risk Management (ERM) framework implementation
• An improvement in the overall credit profile for Beacon’s fixed income portfolio where more than 60% of the portfolio is rated investment grade on the Standard and Poor’s (S&P) rating scale
• Increased profitability leading to an improvement in Return on Assets (ROA) and Return on Equity (ROE) to above 2.5% and 10% respectively for the next financial year

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

• A 2-notch deterioration of the credit rating of Beacon’s top reinsurer
• A fall in insurance revenue by over 15% sustained for 2 years leading to a reduction in Profit After Tax (PAT)
• A fall in PAT by 20% or more for 2 consecutive years
• Loss of relationship with any of the Company’s major reinsurers and failure to provide viable replacements

Analysts’ Contact Info:

Keith Hamlet
Mobile: 1-868-487-8356
khamlet@caricris.com

Zwade Thompson
zthompson@caricris.com

www.caricris.com
info@caricris.com

Disclaimer: CariCRIS has taken due care and caution in the 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 ‘good creditworthiness’ ratings of NCB Capital Markets Limited

Read More

RATING ACTION:

 On September 20, 2024, CariCRIS reaffirmed the Issuer/Corporate Ratings assigned to NCB Capital Markets Limited (NCBCML or the Company) at CariA- (Foreign Currency Rating) and CariA (Local Currency Rating) on the regional scale, and jmAA- (Local Currency Rating) on the Jamaica national scale. 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 Government of Jamaica’s (GoJ) credit rating leading to an improved credit risk profile of National Commercial Bank Jamaica Limited (NCBJ or the Parent)
• Growth in Tangible Net Worth (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 Profit After Tax (PAT) by 15% or more for 1 financial year
• A contraction in TNW/total assets ratio to 10% or less for 2 consecutive financial periods

Analysts’ Contact Info:

Keith Hamlet
Mobile : 1-868-487-8356
khamlet@caricris.com

Maxwell Gooding
mgooding@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 upgrades the ratings of the Government of Anguilla by one notch to CariA- (Foreign and Local Currency); Outlook is Stable

Read More

RATING ACTION:

On September 20, 2024, CariCRIS upgraded by one notch the Issuer/Sovereign Credit ratings to CariA- (Foreign and Local Currency Ratings) on its regional rating scale assigned to the The Government of Anguilla (GOA). A stable outlook was maintained.

 RATING SENSITIVITY FACTORS:

 Factors that could lead to an improvement in the Ratings and/ or Outlook include:

• Annual real GDP growth in excess of 5% sustained for at least 2 years.
• A fiscal surplus of more than 5% of GDP recorded for at least 2 consecutive fiscal periods, with no breaches of debt metrics.
• Meaningful diversification of the economy into sustainable productive sectors (i.e., not directly related to Tourism) that adds at least 10% to real GDP over two consecutive years.

Factors that could lead to a lowering of the Ratings and/ or Outlook include:

• An increase in debt to GDP ratio to above 50%.
• A change in the country’s status as a British Overseas Territory or a material change in the level of support rendered to Anguilla.
• The banking sector’s capitalization ratio falling below 8%.

Analysts’ Contact Info:

Stefan Fortuné
Phone: 1-868-799-6751 (m)
sfortune@caricris.com

Candace Williams
Phone : 1-868-713-6973 (m)
cwilliams@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.