Caribbean Information & Credit Rating Services Limited (CariCRIS), the region’s credit rating agency, has today placed Eastern Credit Union Co-operative Society Limited (ECU) on Rating Watch – Developing.
This Rating Action was taken as a result of ECU’s lack of cooperation with providing us key information requested to facilitate the completion of our annual rating surveillance report for the 2021/22 period, despite our several attempts to obtain same. Furthermore, based on recent media releases, CariCRIS notes that there may be potential legal matters with ECU executives ongoing as well as investigations into its operations by the Commissioner of Co-operatives[1]. We are concerned that these developments could adversely impact the credit union’s stability and financial performance going forward.
CariCRIS will continue to liaise with ECU’s personnel over the coming weeks to obtain the requested information and to determine the impact of recent events on ECU’s creditworthiness and adjust our ratings accordingly. ECU is currently rated CariBB+ (Foreign and Local Currency Ratings) on the regional rating scale and ttBB+ on the Trinidad and Tobago (T&T) national scale with a stable outlook assigned.
A CariCRIS rating is placed on Rating Watch – Developing when events occur that may affect the credit quality of the issuer/issue, the impact of which cannot be accurately assessed at that point in time. A rating placed under Rating Watch does not imply that the rating will necessarily change.
August 17, 2022
[1] The Office of the Commissioner for Co-operatives is responsible for regulating and supervising co-operatives in Trinidad and Tobago, under the legislative requirement of the Co-operative Societies Act, Chapter 81:03 of the Laws of the Republic of Trinidad and Tobago.