Caricris reaffirms NCB subsidiary

Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed its ratings on the debt issue (notional) of the size of US$25 million of NCB Capital Markets Limited (NCBCML) of CariBBB- (Foreign Currency Rating) and CariBBB (Local Currency Rating) on its regional rating scale and jmA+ on the Jamaica national scale. The regional ratings indicate that the level of creditworthiness of this obligation, adjudged in relation to other obligations in the Caribbean is adequate, according to CariCRIS.

The rating agency said: “The ratings of NCBCML reflect the company’s robust capital adequacy levels, its favourable market position being the second largest securities dealer in the Jamaican market, and its extensive geographic coverage. “The company leverages on its relationship with its parent, National Commercial Bank Jamaica Limited (NCBJ), reaping synergistic benefits that lead to the most favourable operating efficiency ratio in the industry. Also supporting the ratings is the strong asset portfolio dominated by Government of Jamaica (GOJ) securities. “In addition, it has a favourable resource profile which is strengthened by an increasing focus on retail clients. Furthermore, NCBCML’s financial performance improved in FY20111 despite operating in a challenging environment. These strengths are tempered by the prevailing tight credit conditions, in the international capital markets and limited liquidity support mechanisms available to the company