CariCRIS reaffirms Overall ‘Good Creditworthiness’ Ratings to JMMB Group Limited

Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed issuer/corporate credit ratings of jmA+ (Local Currency Rating) and jmA (Foreign Currency Rating) on the Jamaica national scale to JMMB Group Limited (JMMBGL). These national scale ratings indicate good creditworthiness of JMMBGL compared to other obligors in Jamaica.

CariCRIS has also maintained a stable outlook on the ratings. The stable outlook is premised on CariCRIS’ expectation that despite the negative impact of the coronavirus (COVID-19) on economic activity in Jamaica and the wider Caribbean region, the Group’s financial performance will continue to be good over the next 12-15 months, bolstered by its increased market presence in the Caribbean through its recent 22.5% acquisition of Sagicor Financial Company Limited (SFC) and the Group’s continued push towards standardisation and branch integration initiatives, that underpins growth and operating efficiencies.

The ratings are supported by the Group’s strong brand equity and long history in the Jamaican securities industry. This brand equity has benefitted the Group as an emerging financial services player in the Caribbean region. JMMBGL’s well-diversified asset portfolio with good asset quality, strong financial performance in FY2020 that was bolstered by the Group’s investment in SFC, comfortable capitalisation level also serves to support the ratings. The Group also continues to be supported by a robust governance structure and sound risk management practices. These rating strengths are tempered by the Group’s high cost to income ratio as well as its moderate concentration in repurchase agreement (repo) instruments that characterizes its funding base. The sluggish economic conditions which could constrain the Group’s growth, also temper the ratings.