RATING ACTION:
On September 20, 2024, CariCRIS reaffirmed the Issuer/Corporate Credit Ratings assigned to Finabank N.V. (Finabank or the Bank) at srA (Foreign Currency Rating) and srA+ (Local Currency Rating) on the Suriname national scale. A stable outlook was maintained.
RATING SENSITIVITY FACTORS:
Factors that could, individually or collectively, lead to an improvement in the ratings and/or outlook include:
- Improvement in the Government of Suriname’s (GOS’) credit risk profile, leading to an improved economic and business environment for Finabank
- Retail deposits ≥ 40% of funding base
- A greater than 100% increase in Profit After Tax (PAT) sustained for 2 consecutive financial years
- Improvement in Tangible Net Worth (TNW) to total adjusted assets to 12% or above sustained for 2 consecutive financial years
Factors that could, individually or collectively, lead to a lowering of the ratings and/or outlook include:
- Deterioration in the GOS’ credit risk profile, leading to a worsened economic and business environment for Finabank
- Deterioration of the gross Non-Performing Loans (NPLs) to gross loans ratio to 5% or more, leading to reduced earnings and increased provisioning, thereby affecting profitability
- Cost to income ≥ 50% sustained for 2 consecutive financial years
- A greater than 10% decline in total income sustained for 2 consecutive financial years
- The occurrence of any factors that may contribute to the deterioration of the Capital Adequacy Ratio (CAR) below the 10% minimum requirement for the Bank
Analysts’ Contact Info:
Keith Hamlet
Mobile: 1-868-487-8356
[email protected]
Megan Dass
Mobile: 1-868-713-6863
[email protected]
www.caricris.com
[email protected]
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