RATING ACTION:
On June 15, 2022, CariCRIS upgraded the assigned Issuer/Corporate Credit ratings by 1-notch to CariA (Foreign and Local Currency Ratings) on the regional scale and ttA (Local Currency Rating) on the Trinidad and Tobago national scale to Bourse Securities Limited (BSL or the Company). 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:
- Improving business conditions and company performance resulting in an increase in Profit After Tax (PAT) by 15% sustained for 3 financial periods
- An increase in net interest spread to at least 2% sustained for 3 financial periods
- An increase in Tangible Net Worth (TNW) by 15% sustained for 3 financial periods
- Further reduction in its funding concentration risk such that less than 40% of its funding is derived from BSL’s top 10 clients sustained for 2 financial periods
Factors that could, individually or collectively, lead to a lowering of the ratings and/or outlook include:
- A deterioration in the credit rating of the sovereign over the next 12-15 months leading to increased liquidity pressures
- Funding withdrawals from its top 3 institutional investors
Analysts’ Contact Info:
Keith Hamlet
Mobile: 1-868-487-8356
Megan Dass