CariCRIS reaffirms “high” creditworthiness ratings of NCB Financial Group Limited

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Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed the regional scale issuer ratings assigned to NCB Financial Group Limited (NCBFG or the Group) of CariA+ (Local Currency) and CariA (Foreign Currency) and jmAAA (Local Currency) and jmAA+ (Foreign Currency) on the Jamaica national scale. The regional scale ratings indicate that the level of creditworthiness of this issuer, adjudged in relation to other issuers in the Caribbean is good. The local currency national scale ratings indicate that the level of creditworthiness of this issuer, adjudged in relation to other issuers in Jamaica is the highest.

CariCRIS has also maintained a stable outlook on the ratings. The stable outlook is based on the expectations that over the next 12 to 15 months, NCBFG’s financial performance would likely improve, supported by its banking and insurance operations. Additionally, the improving economic conditions in its primary operating territories, along with the expected reduction in global interest rates are expected to positively impact the Group’s financial performance. Furthermore, the Group’s subsidiaries are expected to remain well capitalized over the next 12 to 15 months.

?NCBFG’s ratings continue to reflect its standing as a dominant regional financial services player, with a strong presence in the Jamaican banking and securities industries and regional insurance industry. The Group's ratings are supported by strong capitalization levels and solid financial performance. Moreover, its high asset quality is bolstered by growing assets and a robust resource base. Furthermore, the Group’s risk infrastructure remains strong, with an increased focus on technology that supports strategic planning. These rating strengths are, however, tempered by the prevailing economic conditions in the operating territories, which could constrain growth.

Rating Sensitivity Factors:

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

• Improvement in the credit ratings of the Government of Jamaica (GoJ) and/or the Government of the Republic of Trinidad and Tobago (GoRTT) leading to an improved sovereign risk profile

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

• Deterioration of any of the subsidiaries’ CAR below the country-specific regulatory requirements
• Deterioration in the credit ratings of the Government of Jamaica (GoJ) and/or the Government of the Republic of Trinidad and Tobago (GoRTT) leading to a worsened sovereign risk profile
• Deterioration in cost to income ratio of 90% or above

For more information on the ratings of NCB Financial Group Limited, please visit www.caricris.com ?or contact:

Dr. Kathryn Budhooram

Head, Ratings Operations????????????????????????????????? ??????????????????????

Cell: 1-868-706-6510??

E-mail: [email protected]

OR

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.

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