RATING ACTION:
On September 15, 2022, CariCRIS reaffirmed the assigned rating of CariA (Foreign and Local Currency Ratings) on the regional rating scale for NCB(Cayman) Limited. 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:
- 2 consecutive years of improved profitability as a result of higher income earned from investments and/or loans, thereby contributing to sustained earnings growth of around 10-15%.
- A reduction in the NPL ratio to below 5%.
- Increase in TNW by 15% or more for 3 consecutive years.
Factors that could, individually or collectively, lead to a lowering of the ratings/or outlook include:
- A decline in investment yield leading to a contraction in the net interest rate spread to below 1% over the next 12 to 15 months.
- Gross loans to gross NPLs ratio of above 15% sustained for the next 12 months.
- Deterioration in the credit rating of NCB Jamaica (the Parent of NCBKY) that could materially impact the extent of support available to NCBKY
Analysts’ Contact Info:
Keith Hamlet
Mobile : 1-868-487-4356
Sultan Mohammed
Mobile : 1-1868-362-7304