RATING ACTION:
On September 14, 2023, 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.
Analysts’ Contact Info:
Keith Hamlet
Mobile : 1-868-487-4356
Sharlene Gordon
Mobile : 1-1876-618-9811
Disclaimer: CariCRIS has taken due care and caution in compilation of data for this product. Information has been obtained by CariCRIS from sources which it considers reliable. However, CariCRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. No part of this report may be published / reproduced in any form without CariCRIS’ prior written approval. CariCRIS is also not responsible for any errors in transmission and especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of this product.