RATING ACTION:
On September 20, 2024, CariCRIS reaffirmed the Issuer/Corporate Credit Ratings assigned to VM Investments Limited (VMIL or the Group) at CariBBB (Local Currency Rating) on the regional scale, and jmBBB+ (Foreign Currency Rating) and jmA- (Local Currency Rating) on the Jamaica national scale. 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 spread leading to a sustained increase in Profit After Tax (PAT) of 10% or more for 2 years
- An improvement in the credit rating of the Government of Jamaica (GoJ)
- An improvement in the credit risk profile of the Group’s parent, VMFG
- An improvement in the Tangible Net Worth (TNW) to total assets ratio of 10%
- An improvement in the gearing ratio to 7 times
Factors that could, individually or collectively, lead to a lowering of the ratings and/or outlook include:
- Deterioration in VM Wealth Management’s (VMWM) 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 GoJ
- Reduction in PAT of VMIL by 10% or more for 1 year
- Deterioration in Return on Assets (ROA) ratio to less than 1% or Interest Coverage Ratio to less than 1.5 times, sustained for more than 3 months
Analysts’ Contact Info:
Keith Hamlet
Mobile : 1-868-487-8356
[email protected]
Maxwell Gooding
[email protected]
www.caricris.com
[email protected]
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.