CariCRIS reaffirms “high” credit worthiness ratings of JMMB Group Limited

Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed the regional scale issuer ratings assigned to JMMB Group Limited (JMMBGL or the Group) to CariA- (Regional Local Currency) and CariBBB+ (Regional Foreign Currency) and jmAA- (Local Currency Rating) and jmA+ (Foreign Currency Rating) on the Jamaica national scale. The regional scale ratings indicate that the level of creditworthiness of JMMBGL, adjudged in relation to other obligors in the Caribbean is good. The national scale ratings indicate high creditworthiness of JMMBGL compared to other obligors in Jamaica.

CariCRIS also maintained a stable outlook on the ratings. The outlook is based on CariCRIS' expectation that the Group will remain profitable over the next 12-15 months, with capitalisation levels remaining adequate. Furthermore, the anticipated improvement in Jamaica's economic conditions, including projected reductions in interest rates, is expected to positively impact the Group's performance.

The Group’s ratings continue to reflect its strong brand equity and long history of operations in the Jamaican securities industry. JMMBGL’s strong brand has facilitated its expansion into the wider Caribbean region and positioned it as an emerging player in regional financial services. The Group’s ratings also reflect its well-diversified asset portfolio, characterized by good asset quality and continued profitability. Furthermore, JMMBGL’s governance structure, risk management practices and capitalization remain robust. These ratings strengths are tempered by the Group’s significant exposure to the Jamaica economy which could constrain growth. The Group's ratings are further constrained by its funding structure, which features a moderate concentration in repurchase agreements (repo) instruments. This concentration contributes to mismatches between assets and liabilities.

Rating Sensitivity Factors:

Factors that could, individually, or collectively lead to an improvement in the ratings and/or Outlook include:

• Improvement in the Government of Jamaica’s (GOJ) credit rating, reflecting a more favourable business environment for the Group
• Growth in PAT of 15% or more for 3 consecutive years without any adverse impacts on regulatory capital ratios
• Growth in TNW by greater than 15% for 3 consecutive years
• Regional expansion initiatives that lead to an improvement in the Group’s market position in its key business segments

Factors that could, individually, or collectively lead to a lowering of the ratings and/or Outlook include:

• NPL ratio sustained above 8% for another year
• Deterioration of the CAR of any of the Group’s subsidiaries to below the country specific regulatory requirements
• Cost to Income ratio weakens to 90% and over
• Further deterioration in PAT by 15% or more for another consecutive year

For more information on JMMBGL’s ratings, please visit www.caricris.com or contact:

Dr. Kathryn Budhooram

Head, Rating Operations

Cell: 1-868-706-6510

E-mail: [email protected]

OR

Mr. Keith Hamlet

Manager, Ratings

Cell:1-868-487-8356

E-mail: [email protected]

Note :

This rating release is transmitted to you for the sole purpose of dissemination through your agency/newspaper/magazine. You may use this rating release in full or in part without changing the meaning or context thereof but with due credit to CariCRIS. CariCRIS has the sole right of distribution of its rating releases, for consideration or otherwise, through any media, including websites, portals, etc.