RATING ACTION:
On September 14, 2023, CariCRIS upgraded the assigned Issuer/ Corporate Ratings to CariBBB (Local Currency Rating) on the regional scale and jmA- (Local Currency Rating) and jmBBB+ (Foreign Currency Rating) on the Jamaica national scale to VM Investments Limited (VMIL 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:
- Expansion of the Group’s product and service offerings and/or improvements in net interest spreads leading to a sustained increase in PAT of 10% or more for 2 years
- An improvement in the credit rating of the Government of Jamaica
- Less than 25% of VMIL’s (the Company) revenue is derived from dividend income as overall revenue from investments and loans increases sustained for 1 financial period
Factors that could, individually or collectively, lead to a lowering of the ratings and/ or Outlook include:
- Deterioration in VMWM’s total capital to total assets ratio to 7.5% or lower
- A deterioration of VMWM’s capital base to risk-weighted assets ratio to 12.5% or lower
- A lowering of the credit rating of the Government of Jamaica
- Reduction in PAT of VMIL by 10% or more for 2 or more years
- A cash injection of at least J $1.5 billion is not made by VM Financial Group (VMFG) in 2023
Analysts’ Contact Info:
Keith Hamlet
Mobile : 1-868-487-8356
Maxwell Gooding
Disclaimer: CariCRIS has taken due care and caution in compilation of data for this product. Information has been obtained by CariCRIS from sources which it considers reliable. However, CariCRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. No part of this report may be published / reproduced in any form without CariCRIS’ prior written approval. CariCRIS is also not responsible for any errors in transmission and especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of this product.