RATING ACTION:
On June 15, 2023, CariCRIS upgraded the assigned Issuer/Corporate Credit ratings by 1-notch to CariA- (Foreign Currency Rating) and CariA (Local Currency Rating) on the regional scale and reaffirmed the Jamaica national scale ratings of jmAA (Local Currency Rating) and jmAA- (Foreign Currency Rating) to the US $5 million debt issue of Development Bank of Jamaica Limited (DBJ or the Bank). 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 uplift in the creditworthiness of Jamaica, where DBJ derives 100% of its revenue, with an attendant improvement in business prospects for DBJ as well as improved profitability and loan portfolio quality
- Improving business conditions over the next 12-15 months, thereby leading to growth in client base and sustained earnings growth
Factors that could, individually or collectively, lead to a lowering of the ratings/or outlook include:
- A reduction in funding by more than 25%
- Interest rate spread falls by more than 150 basis points (bps)
- A lowering of the creditworthiness of Jamaica
Analysts’ Contact Info:
Anelia Oudit
Mobile : 1-868-487-8364
Kyla Balwant
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