RATING ACTION:
On March 16, 2023, CariCRIS reaffirmed the assigned ratings of ttAA- (National Local Currency Ratings) on the Trinidad & Tobago national scale, for Home Mortgage Bank’s Collateralized Mortgage Obligation – CMO 2022-01. 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:
- An improvement in the credit rating of the sovereign over the next 12-15 months.
- Satisfactory repayment of Tranche A with payment flows in line with or above CariCRIS’ expectations.
- Sustained improvement in TTMF’s asset quality levels which reduces the originator risk.
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 10% and/ or NPL ratio of above 5% 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.
- Replacement of TTMF as Administrator and Trustee and HMB as Registrar and Paying Agent with a lower rated counterparty.
Analysts’ Contact Info:
Keith Hamlet
Mobile : 1-868-487-4356
Sharlene Gordon
Mobile : 1-1876-618-9811