In a bid to expand its services in Jamaica, regional rating agency Caribbean Information and Credit Rating Services (CariCRIS), yesterday (April 28) opened an office on the island.

The new office is located at the PanJam building in New Kingston. CariCRIS, which is headquartered in Trinidad and Tobago, is part-owned by regional central banks, several major regional commercial development banks and CRISIL, an associate company of global rating agency Standard & Poor’s.

The regional rating agency now operates in 18 countries across the Caribbean, with Trinidad accounting for the largest share at 42 per cent and Jamaica, the second-largest share at 25 per cent.

Speaking at yesterday’s virtual launch, CariCRIS CEO, Wayne Dass pointed to the increased demand for its credit rating services in Jamaica.

Increased demand for services in Jamaica

Dass explained that this increased demand for its services in Jamaica is as a result of the revised risk-based regulations in Jamaica, which has seen the “the increased use of independent credit ratings to lift transparency standards and drive proper price discovery in the financial markets.”

According to Dass, “to properly respond to this increased demand and ensure we maintain the same high level of service that our clients are accustomed to, we have decided that an onsite presence in Jamaica by way of a small satellite office would serve us and our clients’ best. Notwithstanding the raging coronavirus pandemic around us, we think that the time is right now, and that we are doing this for the right reasons.”

He pointed to Jamaica’s business relationship with CariCRIS, dating back some 15 years with clients in Jamaica and a growing clientele over the years, “it was only a matter of time before the rating agency located an office in Jamaica.”

In concluding the CariCRIS boss noted that, “over the past two years or so, the Government of Jamaica has made tremendous progress in modernizing its financial sector legislation, working closely with the regulators and the Financial Deepening Committee.”

Also speaking at the launch, CariCRIS Chairman, Gregory Thomson said the rating agency is now formally approved as a recognised credit rating agency and an external credit assessment institution in the Caribbean. Thomson stated that, “to date, we have completed over 1,000 ratings of sovereign, corporate and small and medium-sized enterprises (SME) entities in the Caribbean. Our ratings have been successfully utilized in large sovereign and corporate debt issues. To date we have rated debt to the order of US$3.4 billion.”

He noted that maintaining their independence and managing actual or perceived conflicts of interest can be a daunting task in this small Caribbean space, especially with the high level of interlocking directorships.

Delivering the keynote address, Minister of Finance and the Public Service, Dr Nigel Clarke, said Jamaica, just like others in the world, continues to navigate the consequences of the pandemic and the aim is to focus stronger and recovering faster.

The Finance Minister highlighted that, “what is of note is that our deliberate policy action it has allowed us to remain stabilizes in the worst economic crisis in the world’s history.”

Dr Clarke noted the CariCRIS presence in Jamaica came up at the right time to increase financial soundness.