RATING ACTION:
On December 15, 2022, CariCRIS reaffirmed the assigned ratings of ttA+ (National Local Currency Ratings) on the Trinidad & Tobago national scale for Home Mortgage Bank’s Collateralized Mortgage Obligation – CMO 2020-01. 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:
- A NPL ratio below 5% sustained over the next 12 to 15 months and/ or a return to delinquency levels of 2% – 4% within the underlying mortgage pool over the next 12-15 months.
- Satisfactory repayment of Tranche C with payment flows in line with or above CariCRIS’ expectations.
Factors that could, individually or collectively, lead to a lowering of the ratings/or outlook include:
- Persistent deterioration in the mortgage pool quality with delinquency levels of above 20% and/ or NPL ratio of above 8% within the underlying mortgage pool leading to heightened extension and/ or default risk over the next 12-15 months.
- Deterioration in TTMF’s NPLs to Gross loans ratio of above 10.5% sustained for 2 financial periods.
- A deterioration in the credit risk profile of T&T leading to increased market risk
- Cashflow shortfalls from the mortgage pool that may impair payments of principals and interests.
RATING RATIONALE
The Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed the overall issue ratings assigned to the TT $300 million Collateralised Mortgage Obligation (CMO) of Home Mortgage Bank (HMB) (CMO 2020-01) of ttA+ (SO) on the Trinidad and Tobago (T&T) national scale. This rating indicates that the overall level of creditworthiness of this structured debt obligation, adjudged in relation to other rated debt obligations within T&T is good.
Analysts’ Contact Info:
Keith Hamlet
Mobile : 1-868-487-4356