RATING ACTION:

On December 5, 2024, CariCRIS reaffirmed the Issuer/Corporate Credit Ratings assigned to NCB (Cayman) Limited (NCBKY or the Company) at CariA (Foreign and Local Currency Ratings) on the regional rating scale. A negative 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 50% or more
• A reduction in the Non-Performing Loan (NPL) ratio to below 15% sustained for 2 consecutive years
• Increase in Tangible Net Worth (TNW) by 20% or more for 3 consecutive years
• Improvement in funding profile to more diversified sources leading to improved funding stability

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

• A decline in investment yield leading to a compression in net interest spread to below 1% over the next 12 to 15 months
• A net loss over the next 12 to 15 months
• An increase in the NPL ratio to above 30% for the next 12 months
• A downgrade in the ratings of assets within the fixed income portfolio
• Deterioration in the credit rating of National Commercial Bank Jamaica Limited (NCBJ or the Parent) that could materially impact the extent of support available to NCBKY
• A fall in customer deposits by 15% or more sustained for 2 financial years

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 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.

This report provides a detailed overview of the global energy market, where conflicts, geopolitical changes, and underwhelming economic conditions are shaping crude oil, natural gas, and coal prices. Against this backdrop, we examine the Caribbean’s progress in renewable energy adoption, assessing both the momentum and limitations of the energy transition within the region.

With fossil fuels still making up a significant portion of the region’s energy mix, this analysis highlights the sources of current challenges to reducing dependence on fuel imports and advancing energy security. In this context, the report evaluates the strategic developments in oil and gas production across Guyana, Suriname, and Trinidad & Tobago, along with the anticipated contributions of natural gas as a transitional fuel to facilitate a low-carbon future.

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CariCRIS reaffirms ‘good creditworthiness’ ratings of NCB (Cayman) Limited

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RATING ACTION:

On December 5, 2024, CariCRIS assigned Initial Issuer/Corporate Credit Ratings to Barita Investments Limited (Barita or the Company) at CariBBB+ (Foreign Currency Rating) and CariA- (Local Currency Rating) on the regional rating scale, and jmA (Foreign Currency Rating) and jmA+ (Local Currency Rating) on the Jamaica national 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 improvement in the credit rating of the Government of Jamaica (GoJ)
• Growth in profit after tax (PAT) of 15% or more for 3 consecutive years without material adverse impacts on regulatory capital ratios
• Growth in tangible net worth (TNW) by greater than 10% for 3 consecutive years
• At least 30% of the Board of Directors independent of the Group’s Board
• Further expansion and diversification of Barita through regional expansion

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

• A lowering of the credit rating of the GoJ
• Deterioration of the capital adequacy ratio (CAR) below the specific regulatory requirement sustained for a period of 6 months
• Cost to Income ratio weakens to 75% or over
• Deterioration in TNW to Total Assets ratio to 20% or less sustained for 3 consecutive years
• Deterioration in the average credit rating of arita’s fixed-income portfolio by 2 notches for 3 financial periods

Analysts’ Cntact Info:

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

Megan Dass
Mobile: 1-868-713-6863
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 assigns “adequate creditworthiness” ratings to Barita Investments Limited

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RATING ACTION:

On December 5, 2024, CariCRIS reaffirmed the assigned 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
• 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 decline in the performance of BIL resulting in dividend income falling by more than 50% or fair value losses in excess of US $40 million
• 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 subsidiaries to meet any 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
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 Corporate Credit ratings for Cornerstone Financial Holdings Limited (CFHL)

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RATING ACTION:

On December 5, 2024, CariCRIS reaffirmed the Issuer/Corporate Credit Ratings assigned to National Commercial Bank Jamaica Limited (NCBJ or the Bank) at CariA (Foreign Currency Rating) and CariA+ (Local Currency Rating) on the regional rating 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 in the Ratings and/ or Outlook include:

• Improvement in the Government of Jamaica’s credit rating, leading to an improved credit risk profile of NCBJ
• Retail deposits ≥ 40% of funding base
• Return on Equity (ROE) > 20% sustained for 2 consecutive financial years
• Cost to income ≤ 50% for 2 consecutive financial years

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

• The occurrence of any factors that may contribute to the deterioration of the Capital Adequacy Ratio (CAR) below the 12.5% minimum requirement for the Bank
• Deterioration in gross Non-Performing Loans (NPLs) to gross loans to 7.5% or more, leading to reduced earnings and increased provisioning, thereby affecting profitability
• Loans to Deposits ratio ≥ 90% for 2 consecutive financial years
• ROE < 8% over the next 12 months
• Cost to income ≥ 70% over the next 12 months

Analysts’ Contact Info:

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

Megan Dass
Mobile: 1-868-713-6863
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 “good creditworthiness” ratings of National Commercial Bank Jamaica Limited

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