Category: Ratings Rationale

NCB Financial Group Limited

RATING ACTION: 

On September 20, 2024, CariCRIS reaffirmed the assigned regional ratings of CariA+ (Local Currency Ratings) and CariA (Foreign Currency) and jmAAA (Local Currency) and jmAA+ (Foreign Currency) on the Jamaica national scale for NCB Financial Group 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:

  • Improvement in the credit ratings of the Government of Jamaica (GoJ) and/or the Government of the Republic of Trinidad and Tobago (GoRTT) leading to an improved sovereign risk profile.

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

  • Deterioration of any of the subsidiaries’ CAR below the country-specific regulatory requirements
  • Deterioration in the credit ratings of the Government of Jamaica (GoJ) and/or the Government of the Republic of Trinidad and Tobago (GoRTT) leading to a worsened sovereign risk profile
  • Deterioration in cost to income ratio of 90% or above

 

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.

 

VM Investments Limited

RATING ACTION:

On September 20, 2024, CariCRIS reaffirmed the Issuer/Corporate Credit Ratings assigned to VM Investments Limited (VMIL or the Group) at CariBBB (Local Currency Rating) on the regional scale, and jmBBB+ (Foreign Currency Rating) and jmA- (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:

  • Expansion of the Group’s product and service offerings and/or improvements in net interest spread leading to a sustained increase in Profit After Tax (PAT) of 10% or more for 2 years
  • An improvement in the credit rating of the Government of Jamaica (GoJ)
  • An improvement in the credit risk profile of the Group’s parent, VMFG
  • An improvement in the Tangible Net Worth (TNW) to total assets ratio of 10%
  • An improvement in the gearing ratio to 7 times

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

  • Deterioration in VM Wealth Management’s (VMWM) total capital to total assets ratio to 7.5% or lower
  • A deterioration of VMWM’s capital base to risk-weighted assets ratio to 12.5% or lower
  • A lowering of the credit rating of the GoJ
  • Reduction in PAT of VMIL by 10% or more for 1 year
  • Deterioration in Return on Assets (ROA) ratio to less than 1% or Interest Coverage Ratio to less than 1.5 times, sustained for more than 3 months

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.

 

Access Financial Services Limited (AFS)

RATING ACTION:

On September 20, 2024 CariCRIS reaffirmed the assigned issuer/corporate credit ratings of CariBBB- (Local Currency Rating) and CariBB+ (Foreign Currency Rating) on the regional rating scale, and jmBBB+ (Local Currency Rating) and jmBBB (Foreign Currency Rating) on the Jamaica national scale for Access Financial Services Limited (AFS or the 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:

  • An improvement in the credit risk profile of the Government of Jamaica
  • Improving business conditions over the next 12-15 months, thereby leading to growth in total asset base > 18% and/or sustained earnings growth > 10% over the next 2 years
  • Diversity in revenue streams through the successful launch of new products or new business lines

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
  • Change in AFS’ debt/ TNW or TNW/Total Assets ratios > 1.5 times or < 25% respectively
  • A sustained decrease in yield from interest earning assets > 600 basis points over the next 12-15 months, thereby leading to a compression of the net interest spread earned
  • A fall in AFS’ net loans and advances by more than 20%
  • A deterioration in AFS’ Gross NPLs/Gross Loans ratio to > 8%

 

Analysts’ Contact Info:

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

Kyla Balwant
kbalwant@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.

 

Finabank N.V.

RATING ACTION:

 On September 20, 2024, CariCRIS reaffirmed the Issuer/Corporate Credit Ratings assigned to Finabank N.V. (Finabank or the Bank) at srA (Foreign Currency Rating) and srA+ (Local Currency Rating) on the Suriname 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 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
  • 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
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.

 

Premier Insurance Company Inc.

RATING ACTION:

On June 28, 2024, CariCRIS upgraded the Issuer/Corporate Credit ratings assigned to Premier Insurance Company Inc. (Premier or the Company) by 1 notch to gyA+ (Foreign Currency Rating) and gyAA- (Local Currency Rating) on the Guyana national scale, and CariA- (Local Currency Rating) on the regional 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:

  • Sustained growth in profit after tax (PAT) by >15% over the next 2 years without adversely impacting regulatory capital and asset quality
  • An increase in the concentration of good quality, liquid fixed-income instruments leading to improved asset risk
  • Sustained growth in tangible net worth (TNW) by >15% over the next year
  • An improvement in the credit rating of TRINRE Insurance Company Limited (TRINRE or the Parent)

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

  • A 2-notch deterioration of the credit rating of any of Premier’s reinsurers by A.M. Best, Fitch Rating or Standard and Poor’s Ratings Services
  • Loss of relationship with any of the Company’s reinsurers without viable replacements
  • A deterioration in the Company’s Minimum Capital and Solvency requirements below the quantities stipulated by the Bank of Guyana (BoG) sustained for more than 6 months
  • A 10% fall in insurance revenue for 2 consecutive years
  • A material deterioration in the Company’s investment asset quality sustained for a period of 6 months
  • A lowering of the credit rating of TRINRE

 

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.

 

 

 

Government of the Commonwealth of Dominica

RATING ACTION:

On June 28, 2024, CariCRIS reaffirmed the ratings for a notional US $25 million debt issue of the Government of the Commonwealth of Dominica (GOCD) of CariBB (Foreign and Local Currency Rating) on the regional scale. A stable outlook was assigned.

RATING SENSITIVITY FACTORS:

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

  • Growth in real economic activity of 6% or more, sustained for at least 2 years;
  • A fiscal surplus of more than 5% of GDP recorded for 2 consecutive fiscal periods.

 Factors that could lead to a lowering in the ratings and/or Outlook include:

  • Debt/GDP ratio exceeding 100% for 2 consecutive years;
  • Economic and social disruption caused by natural disasters;
  • Material reduction in grants and multilateral funding.

Analysts’ Contact Info:

Stefan Fortuné
Mobile: 1-868-799-6751
sfortune@caricris.com

Carla Ash
Mobile : 1-868-713-6794
cash@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.

 

 

Sygnus Credit Investments Limited

RATING ACTION:

On June 28, 2024, 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 an increased client base and sustained earnings growth as evidenced by growth in operating profits by 10% or more for 2 consecutive years.
  • 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 non-performing investment ratio to 8% or more, sustained for 2 consecutive years
  • 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 the net interest spread earned on investments to less than 1% for 2 consecutive financial years

 

Analysts’ Contact Info:

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

Brandon Singh
bsingh@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.

 

 

 

Seprod Limited

RATING ACTION:

 On June 28, 2024, CariCRIS reaffirmed the assigned Issuer/Corporate Credit Ratings of CariA (Local Currency Rating) on the regional rating scale and jmAA- (Local Currency Rating) and jmA+ (Foreign Currency Rating) on the Jamaica national scale to Seprod Limited (Seprod or the Group). A stable outlook was assigned. 

RATING SENSITIVITY FACTORS:

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

  • An improvement in the GOJ’s credit rating over the next 12-15 months
  • An improvement in PAT margin above 5% for the next 2 years
  • An improvement in the DSCR to 1 time or above sustained for 2 years

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

  • A deterioration in the GOJ’s credit rating over the next 12-15 months
  • A deterioration in the PAT margin below 3% sustained for 2 years
  • The Group’s DSCR remains below 1 time for another year

 

Analysts’ Contact Info:

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

Kyla Balwant
kbalwant@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.

Eastern Caribbean Home Mortgage Bank

RATING ACTION:

On June 28, 2024, CariCRIS reaffirmed the Issuer/Corporate Credit ratings assigned to Eastern Caribbean Home Mortgage Bank (ECHMB or the Company) at CariA- (Foreign and Local Currency Ratings) on the regional rating 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 increase in net interest spread to at least 2% sustained for 3 financial years
  • Further diversity in income streams through the successful launch of new products, investments, and services
  • A greater than 20% improvement in Profit After Tax (PAT) for 2 consecutive years.
  • An increase in Tangible Net Worth (TNW) by 15% sustained for 3 financial years
  • Further diversity in funding to include sources from outside of the Organization of Eastern Caribbean States (OECS)

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

  • A tightening of net interest spread to below 1%
  • A deterioration in PAT by more than 20% for 2 consecutive years
  • TNW to Total Assets below 12%

 

Analysts’ Contact Info:

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

Rudra Bhimsingh
RBhimsingh@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.

 

 

 

 

Development Bank of Jamaica Limited

RATING ACTION:

On June 28, 2024, CariCRIS reaffirmed the assigned Issuer/Corporate Credit ratings at CariA (Local Currency Rating) and CariA- (Foreign Currency Rating) on the regional scale and jmAA (Local Currency Rating) and jmAA- (Foreign Currency Rating) on the Jamaica national scale to the Development Bank of Jamaica Limited (DBJ or the 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:

  • An uplift in the creditworthiness of Jamaica, where DBJ derives 100% of its revenue, with an attendant improvement in business prospects for DBJ as well as improved profitability and loan portfolio quality
  • Improving business conditions over the next 12-15 months, thereby leading to growth in client base and sustained earnings growth

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

  • A reduction in funding by more than 25%
  • Interest rate spread falls by more than 150 basis points (bps)
  • A lowering of the creditworthiness of Jamaica

 

Analysts’ Contact Info:

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

Kyla Balwant
kbalwant@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.