The trinidad Guardian / Bourse Securities Ltd’s (BSL) credit rating of CariA- (Foreign and Local Currency Ratings) on the regional rating scale, and ttA- on the T&T national scale has been reaffirmed by the Caribbean Information & Credit Rating Services Limited (CariCRIS) with a stable outlook.
These ratings agency said this indicates the company’s level of creditworthiness in relation to others within T&T and the Caribbean. CariCRIS said it expects the company to enjoy continued profitability and maintenance of a healthy net interest spread, notwithstanding the economic slowdown.
BSL is also expected to maintain its overall stable credit profile, underpinned by a conservative leverage ratio as well as strong capital buffers, liquid portfolios and high-quality, collateralbacked repo funding over the next 12-15 months.
CariCRIS said the company is experiencing “continued favourable financial performance as reflected in its good diversity of income streams and increased profitability.”
It added: “The ratings continue to be supported by good asset quality, underpinned by a diverse investment portfolio, as well as the positive impact of some measures taken by the company’s management to enhance its Enterprise Risk Management Framework.
“Also adding to the overall good credit ratings is the company’s sound asset liability management practices, which contribute to an overall strong liquidity profile. Given the prevailing challenging environment, these supporting factors, however, are tempered by the fact that BSL’s funding base remains highly concentrated towards a small number of large institutional investors, subjecting the company to a high degree of liquidity risk should these investors require repayment of the associated liabilities at short notice.
“However, this risk is mitigated as virtually all of BSL’s repos have a fixed term to maturity inherent and there is no provision for early redemption.”
Bourse maintains stable rating
Con Información de The trinidad Guardian
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