Rating agency the Caribbean Information and Credit Rating Services Ltd (CariCRIS) has reaffirmed the assigned corporate credit ratings of CariA- (foreign and local currency ratings) on the regional rating scale, and ttA- (foreign and local currency ratings) on the T&T national scale to Home Mortgage Bank (HMB).
These ratings indicate that the level of creditworthiness of this obligor, adjudged in relation to other obligors in the Caribbean and within T&T is good.
In a release CariCRIS has also assigned a negative outlook on the ratings.
It explained the negative outlook is based on the high likelihood that HMB would continue to display elevated levels of non-performing loans (NPLs), though some improvements are likely over the next 12 to 15 months from its June 2025 position, driven by the anticipated reconstitution of HMB’s board of directors.
While CariCRIS anticipates some recovery in HMB’s profit after tax (PAT) driven by reduced loan loss provisioning, its key profitability metrics are likely to remain lower than its three-year (2021 to 2023) average.
The release said this is likely to be further exacerbated by persistent elevated interest rates which can constrain HMB’s funding costs going forward.
Nonetheless, HMB is expected to comfortably meet its debt obligations and maintain strong capitalisation levels over the next 12 to 15 months, CariCRIS added.
It further noted that HMB’s ratings are underpinned by its good financial performance in 2024, albeit lower profitability levels, alongside strong capitalisation that was well above its peers.
HMB was established under the Home Mortgage Bank Act of 1985 and commenced business in October 1986. On January 17, 2024, HMB was acquired by the T&T Mortgage Finance Company (TTMF) through the transfer of 100 per cent of the shares from the National Insurance Board of T&T (NIBTT). Subsequently, TTMF was renamed the T&T Mortgage Bank Ltd (TTMB) on March 21, 2024.
