RATING ACTION:
On September 15, 2022, CariCRIS reaffirmed the assigned Issuer/ Corporate Ratings of CariA (Local and Foreign Currency Rating) on the regional scale and ttA (Local Currency Rating) on the Trinidad and Tobago national scale to NCB Merchant Bank (Trinidad & Tobago) Limited (NCB Merchant or the Company). A stable outlook was assigned.
RATING SENSITIVITY FACTORS:
Factors that could, individually or collectively, lead to an improvement of the ratings and/ or Outlook include:
- The successful rollout of the Company’s income rebalancing strategy leading to a greater contribution to total income from its Retail and Business Banking Division to over 40%
- A reduction in the reliance on institutional funding to under 50%
- Sustained increase in profitability of 10% over the next 15 months years
Factors that could, individually or collectively, lead to a lowering of the ratings and/ or Outlook include:
- Declining asset yields or rising funding costs, leading to a material contraction in spread income to below 1% over the next year
- A systematic increase in liquidity pressures in the environment, leading to funding withdrawals in excess of 50% from large institutional investors, and a worsening of short-term TT$ liquidity measures over an 18-month period
- Deterioration in the Parent’s (NCBCML) credit rating that could materially impact the extent of credit support available to NCB Merchant
Analysts’ Contact Info:
Keith Hamlet
Mobile : 1-868-487-8356
Maxwell Gooding