RATING ACTION:
On September 14, 2023, CariCRIS reaffirmed the assigned Issuer/Corporate Credit ratings of CariA (Foreign & Local Currency Ratings) on the regional scale and ttA (Foreign & Local Currency Ratings) on the Trinidad and Tobago national scale to Colonial Fire & General Insurance Company Limited (Colfire 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:
- An improvement in the credit rating of the Government of the Republic of Trinidad and Tobago
- Sustained growth in PAT by >15% for two consecutive years without impacting other financial health indicators like capital adequacy and asset quality
Factors that could, individually or collectively, lead to a lowering of the ratings and /or outlook include:
- A lowering of the credit rating of the Government of the Republic of Trinidad and Tobago
- A 2-notch deterioration of the credit rating of any of Colfire’s top 3 reinsurers by Standard and Poor’s Ratings Services
- A sustained deterioration in the Company’s regulatory capital adequacy ratio below 150% over the next 12 months
- Loss of relationship with any of the Company’s major reinsurers due to issues relating to the accessing foreign exchange
- A 15% fall in Motor Premium Income
- A more than 10.6% decline in operating profit over the next 12-15 months leading to another LAT
Analysts’ Contact Info:
Anelia Oudit
Mobile : 1-868-487-8364
Brandon Singh
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