NCB Capital Markets Limited

RATING ACTION:

On November 14, 2023, CariCRIS upgraded the assigned Issuer/ Corporate Ratings to CariA (Local Currency Rating) on the regional scale and reaffirmed jmAA- (Local Currency Rating) on the Jamaica national scale to NCB Capital Markets Limited (NCBCML or the Company). A stable outlook was maintained.

RATING SENSITIVITY FACTORS:

Factors that could, individually or collectively, lead to an improvement of the ratings and/ or Outlook include:

  • Improving profitability by 10% or more for 2 consecutive periods as a result of higher income earned from its asset management and investment banking segments
  • Improvement in 1-year Liquidity Gap ratio to 35% or better for two consecutive years
  • Improvement in the GoJ’s credit rating leading to an improved credit risk profile of NCBJ
  • Growth in TNW by 15% or more for 2 consecutive financial periods

Factors that could, individually or collectively, lead to a lowering of the ratings and/ or Outlook include:

  •  Worsening of NCBCML’s short-term J$ liquidity measures over a 24-month period
  • A downgrade in the GoJ’s credit rating leading to a deteriorated credit risk profile of NCBJ
  • A reduction in NCBCML’s capital adequacy ratio to below the Systematically Important Financial Institution (SIFI) regulatory minimum of 14%
  • A Reduction in PAT by 15% or more for 2 consecutive financial periods
  • A contraction in TNW by 17.5% or more for 2 consecutive financial periods

Analysts’ Contact Info:

Keith Hamlet

Mobile : 1-868-487-8356

[email protected]

Maxwell Gooding

[email protected]

www.caricris.com 

[email protected]