RATING ACTION:
On September 14, 2023, CariCRIS reaffirmed the assigned Issuer/Corporate Credit ratings of CariA+ (Foreign and Local Currency Ratings) on the regional scale and ttA+ (Local Currency Ratings) on the Trinidad and Tobago national scale to the Trinidad and Tobago Mortgage Company Limited (TTMF or the Company). A stable outlook was maintained.
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
- The advancement of the proposed merger over the next 12 months which will lower the funding costs and introduce new products
- Successful completion of housing projects over the next 12 months which would sustainably grow TTMF’s subsidized mortgage portfolio
Factors that could, individually or collectively, lead to a lowering of the ratings/or outlook include:
- A deterioration in the credit rating of the sovereign over the next 12-15 months
- A rise in the cost to income ratio to 55% or greater
- A sustained increase in funding costs by 100 basis points or greater over the next 12 months, resulting in a material contraction in net interest spreads by over 200 basis points
- A material reduction (50% or greater) in or complete withdrawal of subsidized funding from Government of the Republic of Trinidad and Tobago (GORTT).
- NPL/Gross Loans greater than 8% for 2 consecutive years
Analysts’ Contact Info:
Anelia Oudit
Mobile : 1-868-487-8364