RATING DRIVERS
Supporting Factors
- Competitive advantage lies in its strong affiliation with the NCB Financial Group
- Continued good financial performance underpinned by stable asset growth
- Favourable resource base and adequate capitalisation
Constraining Factor
- Exposure to downside economic risks in Barbados, the Eastern Caribbean and Jamaica
Rating Sensitivity Factors
Factors that could, individually or collectively, lead to an improvement in the ratings and/or Outlook include:
- Improvement in profitability over the next 12 to 15 months supported by earnings from the Eastern Caribbean region
- Successful roll-out of new services leading to further diversity in income-earning capability
- An improvement in the TNW to total assets ratio to 18%
Factors that could, individually or collectively lead to a lowering of the ratings and/or Outlook include:
- Significant deterioration in the credit risk profiles of the Government of Jamaica and the Government of Barbados
- A deterioration in net interest spread below 1.5% resulting in a reduction in earnings
COMPANY BACKGROUND
NCB Capital Markets (Barbados) Limited (NCBCMBL or the Company) is a securities and investment banking company, licensed by the Barbados Financial Services Commission (FSC). NCBCMBL plays a strategic role in executing the National Commercial Bank Jamaica Limited (NCBJ) wealth and asset management growth strategy and has provided an avenue for the Bank’s entry into Barbados and the Eastern Caribbean region.
The Company was established in May 2015 as a wholly-owned subsidiary of NCB Capital Markets Ltd (NCBCML), the principal asset and wealth management arm of NCBJ[1]. In September 2015, the entity was granted a broker-dealer license by the Barbados FSC. The current operations entail mainly the management of an investment portfolio, a repo book, and investment banking. Through the employment of the ‘hub and spoke’ model, NCBCMBL operates as an investment banking hub, serving Barbados and the Eastern Caribbean countries, targeting central government, parastatals, medium to large corporates, and high net worth (HNW) individuals in these territories.
[1] NCBCML is the Brokerage and Wealth Management arm of NCBJ and has offered investment products and services to Jamaican institutions and individuals for almost 40 years. NCBJ is the largest bank in Jamaica by assets and is rapidly becoming a major financial services provider in the region. NCBCML is rated CariA- (Local Currency Rating) and CariBBB+ (Foreign Currency Rating) and NCBJ is rated CariA- (Foreign Currency Rating) and CariA (Local Currency Rating) by CariCRIS.
Analytical Contacts:
Keith Hamlet
Tel: 1-868-627-8879 Ext. 244
Mobile: 1-868-487-8356
E-mail: [email protected]
Samuel Raphael
Tel: 1-868-627-8879 Ext. 234
E-mail: [email protected]
Website: www.caricris.com
Email: [email protected]
Disclaimer: CariCRIS has taken due care and caution in compilation of data for this product. Information has been obtained by CariCRIS from sources which it considers reliable. However, CariCRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. No part of this report may be published / reproduced in any form without CariCRIS’ prior written approval. CariCRIS is also not responsible for any errors in transmission and especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of this product.