RATING ACTION:
On August 30, 2022, CariCRIS has upgraded the assigned Issuer/Corporate Credit Ratings by 1-notch to CariBBB- (Foreign and Local Currency Ratings) on the regional rating scale, and jmBBB+ (Foreign and Local Currency Ratings) on the Jamaican national scale to Sygnus Credit Investments Limited (SCI or the Company). A stable outlook was also maintained.
RATING SENSITIVITY FACTORS:
Factors that could, individually or collectively, lead to an improvement of the rating and/or outlook:
- An improvement in the GOJ’s credit rating over the next 12-15 months
- Improving business conditions over the next 12-15 months, thereby leading to growth in client base and sustained earnings growth
- Further diversity in asset class through the successful launch of new products
- SCI’s ability to attract and retain lower cost funding
Factors that could, individually or collectively, lead to a lowering of the rating and/or outlook:
- Deterioration of asset quality ratio to 8% or more
- Increase of SCI’s debt to TNW and/or total debt to total assets ratio to over 1.25 times or above 50% respectively
- Cost to Income ratio weakens to 75% and over
- A sustained decrease in yield from average interest earning assets by over 150 basis points or greater and/or a rise in funding costs to over 8%, thereby leading to a tightening of the net interest spread earned on investments
- A deterioration in the GOJ’s credit rating over the next 12-15 months
Analysts’ Contact Info:
Anelia Oudit
Mobile : 1-868-487-8364
Brandon Singh