RATING ACTION:
On September 14, 2023, CariCRIS reaffirmed the assigned ratings of CariA- (Foreign and Local Currency Ratings) on the regional rating scale for Eastern Caribbean Home Mortgage 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:
- Rising profit margins and sustained earnings growth for ECHMB over the next 3 years
- Further diversity in income streams through the successful launch of new products, investments, and services
- Further diversity in its funding to include sources from outside the OECS region.
- Strengthening of its capitalization level to above 20%
- A 20% improvement in PAT for 2 consecutive years
Factors that could, individually or collectively, lead to a lowering of the ratings/or outlook include:
- A significant tightening of the net interest spread below 1% earned on investments and a material decline in profitability of 10% sustained for 2 financial periods
- The Company’s Tangible Net Worth to Total Assets remaining below 12% for the next financial year
- A further deterioration in PAT by more than 20% for 2 more consecutive years
Analysts’ Contact Info:
Keith Hamlet
Mobile: 1-868-487-4356
Sultan Mohammed
Mobile : 1-1868-362-7304