Caribbean Information and Credit Rating Services Limited (CariCRIS) has assigned initial issuer/corporate credit ratings of jmA+ (Local Currency Rating) and jmA (Foreign Currency Rating) on the Jamaica national scale to JMMB Group Limited (JMMBGL). These national scale ratings indicate that the level of creditworthiness of this obligor, adjudged in relation to other obligors in Jamaica is good.
A media release from the JMMB Group yesterday said that the ratings are supported by the Group’s strong brand and long history in the Jamaican securities industry as well as its emergence as a regional financial services player.
JMMBGL is a financial services Group incorporated and domiciled in Jamaica and listed on the Stock Exchanges of Jamaica and T&T.
“JMMBGL’s well-diversified asset portfolio with good asset quality, as well as its good financial performance, comfortable capitalisation level and robust governance structure and risk management practices, also serve to support the ratings. These rating strengths are tempered by the Group’s high cost to income ratio as well as the moderate concentration in repurchase agreement (repo) instruments that characterises its funding base. The sluggish economic conditions in Trinidad and Tobago (T&T) which could constrain the Group’s growth, also temper the ratings.”
The media release added that CariCRIS has also assigned a stable outlook on the ratings.
“The stable outlook is premised on CariCRIS’ expectation that the Group’s financial performance will continue to be good over the next 12-15 months, buttressed by the finalisation of its up to US $250 million investment in Alignnvest Class B shares, that will convert to common shares in Sagicor Financial Corporation, which could serve to increase its profitability and further expand its market presence in the Caribbean. In addition, we expect the improved economic activity in Jamaica together with the ongoing standardisation and branch integration initiatives in the Group to underpin continued growth and improved operating efficiencies over the period.” The release read.