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S&P maintains BBB rating on RBL

Saturday, December 14, 2013

While expressing concern for non-performing loans in other Caribbean territories, Standard & Poor’s (S&P) credit rating agency this week maintained its BBB+ rating and “stable outlook” on Republic Bank Ltd (RBL). In its summary analysis dated December 13, S&P gave RBL’s credit rating history as BBB+ on December 6, 2011, and BBB- on May 11, 2009.



“The stable outlook on Trinidad and Tobago-based bank Republic Bank Ltd. (RBL) reflects our expectations that it will maintain its strong business position and very strong risk-adjusted capitalisation (RAC). It also incorporates our expectation that the bank will maintain its strong presence in T&T and in the other countries where it operates,” the agency said.


“We believe that the bank’s RAC ratio will remain very strong, based on our expectation for eight per cent loan growth in 2014, and adequate internal capital generation capacity. We expect the bank’s return on assets (ROA) to be around two per cent during 2014. We could raise the rating if we upgrade Trinidad and Tobago and RBL’s ‘bbb+’ stand-alone credit profile (SACP) remains unchanged.”


The agency added: “We could lower the ratings if RBL’s SACP drops by two notches or more, if the bank’s RAC ratio falls and remains below 15 per cent, or asset quality metrics deteriorate further with nonperforming assets (NPAs) rising close to five per cent.”


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