RATING ACTION:

On December 5, 2024, CariCRIS upgraded the overall issue rating to ttAA- (SO) on the Trinidad and Tobago (T&T) national scale to the TT $200 million Collateralised Mortgage Obligation (CMO) of Home Mortgage Bank (HMB) (CMO 2019-01). 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 loan portfolio quality, with an NPL ratio of lower than 3% sustained for 2 years
• A return to delinquency levels of 2% – 4% within the underlying mortgage pool over the next 12-15 months.

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

• Persistent and further deterioration in the mortgage pool quality with delinquency levels of above 22% 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.
• Consistent cash flow shortfalls in the underlying mortgage pool over the next 12-15 months that may impair payments of principals and interests.
• A deterioration in the credit risk profile of T&T leading to increased market risk.

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.

RATING ACTION:

On December 5, 2024, CariCRIS reaffirmed the assigned issue ratings of CariA (Local and Foreign Currency Ratings) on the regional scale and ttA (Local Currency Rating) on the Trinidad and Tobago national scale to the TT $400 million bond issue of Endeavour Holdings Limited (EHL 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 ratings of the Government of Trinidad and Tobago
•  PAT, excluding FV and revaluation gains/losses increases by 8% or more for at least 2 consecutive years
• Occupancy levels rising to above 95%
• Acquisition of additional properties, further diversifying EHL’s asset base

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

•  An increase in rental expenses to 40% or more of rental income leading to a material decline in operating profits
• Occupancy levels declining to below 80%
• Breach of any of the bond’s financial covenants for 2 consecutive years
•  A fall in the effective DSCR to below 1.5 times for 2 consecutive years

Analysts’ Contact Info:

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

RATING ACTION:

On December 6, 2023, CariCRIS reaffirmed the assigned issue ratings of CariA (Local and Foreign Currency Ratings) on the regional scale and ttA (Local Currency Rating) on the Trinidad and Tobago national scale to the TT $400 million bond issue of Endeavour Holdings Limited (EHL or the Company). A positive 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 ratings of the Government of Trinidad and Tobago
• Rental income increases by 8% or more leading to a more than 13% increase in operating profit
• Occupancy levels rising to above 95%
• A rise in effective DSCR to over 1.5 times for 2 consecutive years

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

• An increase in rental expenses to 40% or more of rental income leading to a material decline in PAT
• Occupancy levels declining to below 75%
• Breach of any of the bond’s financial covenants
• A fall in the effective DSCR to below 1.5 times for 2 consecutive years.

Analysts’ Contact Info:

Anelia Oudit

Mobile : 1-868-487-8364

aoudit@caricris.com    

Brandon Singh

bsingh@caricris.com 

NiQuan Energy Trinidad Limited – Withdrawal of Issuer/ Corporate Credit Ratings

Caribbean Information & Credit Rating Services Limited (CariCRIS), the region’s credit rating agency, wishes to inform the public of the withdrawal of the Issuer/ Corporate credit ratings and outlook assigned to NiQuan Energy Trinidad Limited (NETL or the Company). These ratings were last reported on by CariCRIS in May 2024.Caribbean Information & Credit Rating Services Limited (CariCRIS), the region’s credit rating agency, wishes to inform the public of the withdrawal of the Issuer/ Corporate credit ratings and outlook assigned to NiQuan Energy Trinidad Limited (NETL or the Company). These ratings were last reported on by CariCRIS in May 2024.

These ratings were withdrawn following CariCRIS’ receipt of notice from NETL. As a result, the ratings will no longer be kept under annual surveillance and as such there will be no further updates on the corporate credit ratings.

December 4, 2024

RATING ACTION:

On September 20, 2024, CariCRIS reaffirmed the Issuer/Sovereign Credit ratings of CariBBB- (Foreign and Local Currency Ratings) on its regional rating scale assigned to the The Government of Saint Lucia (GOSL). A stable outlook was maintained.

RATING SENSITIVITY FACTORS:

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

• Substantial changes in the debt levels leading to a debt to GDP ratio below 65%
• Achievement of a balanced budget over the medium term
• Sustained real GDP growth of the order of 3% per annum or more (above pre-COVID-19 level)

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

• Significant changes in the fiscal position leading to a fiscal deficit larger than 15% of GDP
• Substantial changes in the debt levels leading to sustained debt to GDP in excess of 90% alongside a decline in debt servicing to below 2 times

Analysts’ Contact Info:

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

Melissa McKain
Phone: 1-868-627-8879
mmckain@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.

RATING ACTION:

On September 20, 2024, CariCRIS reaffirmed the assigned Issuer/Corporate Credit Ratings of CariA- (Regional Local Currency) and CariBBB+ (Regional Foreign Currency) and jmAA- (Local Currency) and jmA+ (Foreign Currency) on the Jamaica national scale for JMMB Group Limited. A stable outlook was assigned.

RATING SENSITIVITY FACTORS:

• Improvement in the Government of Jamaica’s (GOJ) credit rating, reflecting a more favourable business environment for the Group
• Growth in PAT of 15% or more for 3 consecutive years without any adverse impacts on regulatory capital ratios
• Growth in TNW by greater than 15% for 3 consecutive years
• Regional expansion initiatives that lead to an improvement in the Group’s market position in its key business segments

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

• NPL ratio sustained above 8% for another year
• Deterioration of the CAR of any of the Group’s subsidiaries to below the country specific regulatory requirements
• Cost to Income ratio weakens to 90% and over
• Further deterioration in PAT by 15% or more for another consecutive year

Analysts’ Contact Info:

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.

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.

 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.