RATING DRIVERS
Supporting Factors:
- Strong market position as the largest credit union in Trinidad and Tobago with growing asset base and membership
- Good financial performance as evidenced by continued profitability and asset growth albeit at lower levels
Constraining Factors:
- High non-performing loan levels with rising delinquency
- Room for improvement in risk management, though strides were made over the last year
- Challenging economic environment with increased competitive pressures present significant downside risks to the local credit union industry and the profitability of Eastern Credit Union
Rating Sensitivity Factors
Factors that could, individually, or collectively lead to an improvement in the ratings and/or outlook:
- A decline in operating expenses leading to a cost to income ratio of under 50% over 2 consecutive years
- A decline of the NPL ratio to <6% for 2 consecutive years
Factors that could, individually, or collectively lead to a lowering of the ratings and/or outlook:
- An increase in operating expenses leading to a cost to income ratio of over 70% over 2 consecutive years
- NPL ratio remains above 12% in next financial year
- A deterioration in the credit rating of the sovereign over the next 12-15 months thereby leading to further weakening of ECU’s asset quality metrics
COMPANY BACKGROUND
Eastern Credit Union Co-operative Society Limited (ECU) was established in Trinidad and Tobago (T&T) in April 1973 under the Co-operative Societies Act. Membership in ECU, which is open to all nationals of T&T, exceeded 201,000 persons as at December 2020.
The credit union offers a range of products and services including savings accounts, fixed deposits, consumer loans, mortgages and business loans. ECU also owns 100% of a real estate management and development company, Eastern Properties Limited (EPL). EPL’s services include the La Joya Executive Suite rental, event venue rentals, sporting complex, facilities management, custodial services and property management.
Analytical Contacts:
André Joseph
Tel: 1-868-627-8879 Ext. 224
Mobile: 1-868-788-4693
E-mail: [email protected]
Anelia Oudit
Tel: 1-868-627-8879 Ext. 226
Mobile: 1-868-487-8364
E-mail: [email protected]
Website: www.caricris.com
Email: [email protected]
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