RATING ACTION:
On November 14, 2023, CariCRIS reaffirmed the assigned Issuer/ Corporate Ratings of CariA (Local and Foreign Currency Rating) on the regional scale and ttA (Local Currency Rating) on the Trinidad and Tobago national scale to NCB Merchant Bank (Trinidad and Tobago) Limited (NCB Merchant or the Company). A stable outlook was maintained.
RATING SENSITIVITY FACTORS:
Factors that could, individually or collectively, lead to an improvement of the ratings and/ or Outlook include:
- The successful rollout of the Company’s income rebalancing strategy leading to a greater contribution to total income from its Retail and Business Banking Division to over 40%
- A reduction in the reliance on institutional funding to under 50%
- Sustained increase in profitability of 15% or more for 2 consecutive financial years
- A reduction in the exposure to the Government in the loan portfolio to 60%
Factors that could, individually or collectively, lead to a lowering of the ratings and/ or Outlook include:
- Net interest spread compression leading to a reduction in profit after tax (PAT) by greater than 15% sustained for 2 financial years
- A systematic increase in liquidity pressures in the environment, leading to funding withdrawals in excess of 50% from large institutional investors, and a worsening of short-term TT$ liquidity measures over an 18-month period
- Deterioration in the Parent’s (NCB Capital Markets Limited or NCBCML) credit rating that could materially impact the extent of credit support available to NCB Merchant
Analysts’ Contact Info:
Keith Hamlet
Mobile : 1-868-487-8356
Maxwell Gooding