RATING ACTION:
On March 14, 2025, CariCRIS assigned initial issuer/corporate credit ratings of CariBBB+ (Foreign and Local Currency Ratings) on the regional rating scale for Sterling (Saint Lucia) Holdings Limited (SHL or the 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:
- Top 10 investment exposure reducing to less than 30% over the next two years
- A net spread above 2.6% sustained for 3 financial periods
- Leverage ratio below 3 times for 2 consecutive years•
- Total earning assets/total interest-bearing liabilities above 1.5 times sustained for 2 consecutive financial periods
- TNW/Total Assets increases above 20% sustained for 2-years•
- An improvement in the liquidity gap ratio below 35% for 2 consecutive years
Factors that could, individually or collectively, lead to a lowering of the ratings and/ or Outlook include:
- Increase in non-investment grade fixed income assets above internal limit of 30%
- Inability of SAM to meet capital adequacy regulatory requirements in the Jamaica financial services industry
- Decrease in asset yield and/or increase in funding costs leading to a compression in the net interest spread below 1% sustained for 2 consecutive years
- A deterioration in the cost to income ratio above 40% for 2 consecutive period.
- TNW/Total Assets below 10% for 2 consecutive years
- A deterioration in the liquidity gap ratio above 50% sustained for 2 years.
Analysts’ Contact Info:
Keith Hamlet
Mobile: 1-868-487-8356
[email protected]
Kyla Balwant
[email protected]
www.caricris.com
[email protected]
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