Dominica Agricultural, Industrial and Development Bank

RATING ACTION:

On March 14, 2025, CariCRIS reaffirmed the ratings currently assigned to the Dominica Agricultural, Industrial and Development Bank (DAID or the Bank) at CariB (Foreign and Local Currency Ratings) on the regional rating scale. A stable outlook was assigned.

Download Full Rating Rationale

RATING SENSITIVITY FACTORS:

Factors that could, individually or collectively, lead to an improvement in the Ratings and/ or Outlook include:

• An upgrade to the sovereign credit rating of the GOCD
• Improvement in the NPL ratio to less than 16%
• Improvement in the cost to income ratio to 95% or lower, sustained for 2 financial periods
• Adherence to the EIB’s revised financial covenants
• Sustained profitable operations, leading to ROEA and ROE of 0.1% and 0.8% or above, for 2 financial periods
• Progress in the implementation of the Bank’s ERM framework

Factors that could, individually or collectively, lead to a lowering of the Ratings and/ or Outlook include:

• A change in the sovereign credit rating of the GOCD
• Sustained NPL ratio of 45% or more over for the next 12 – 15 months
• Further delay in the full implementation of the Bank’s Enterprise Risk Management Framework
• Any loss of major funding lines without identification of a suitable alternative
• A decline in the liquidity ratio to 1 time or less over the next 12 months
• A fall in the Bank’s capital adequacy ratio to less than 25% over the next 12 – 15 months