RATING ACTION:
On August 29, 2022, 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 Three (3) years.
- Further diversity in income streams through the successful launch of new products, investments, and services.
- Further diversity in funding to include sources from outside the OECS region.
- Strengthening of its capitalization level to above 20%.
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 Two (2) financial periods.
- The Company’s Tangible Net Worth to Total Assets remaining below 12% for the next financial year.
Analysts’ Contact Info:
Keith Hamlet
Mobile : 1-868-487-4356
Sultan Mohammed
Mobile : 1-1868-362-7304