The Caribbean Information and Credit Rating Services Limited (CariCRIS) says it has reaffirmed the assigned issuer/corporate credit ratings to the Trinidad-based ANSA Merchant Bank Limited. 

CariCRIS ascribed the following ratings: CariAA (regional scale local and foreign currency) and ttAA (Trinidad and Tobago national scale local and foreign currency)

These ratings include a single notch up for the high likelihood of support, if needed, from the parent ANSA McAL Limited. The regional scale ratings indicate that the level of creditworthiness of this obligor, adjudged in relation to other obligors in the Caribbean, is high. 

The national scale ratings indicate that the AMBL Group’s creditworthiness, compared to other obligors in T&T, is high.

CariCRIS has also assigned a stable outlook on the ratings. The stable outlook is based on the high likelihood of AMBL Group maintaining profitable operations over the next 12-15 months. This is underpinned by its favourable market position and ongoing execution of digital and marketing initiatives, which are anticipated to drive revenue growth and bolster operating efficiencies. Additionally, the AMBL Group is expected to remain well-capitalised with good asset quality. Further, its sound liquidity profile is expected to ensure the AMBL Group comfortably meets its debt service obligations on time over the next 12-15 months.

The ratings are driven by the AMBL Group’s favourable market position, supported by a well-established brand and long history in the financial services industry. Additionally, the AMBL Group continues to exhibit good financial performance, buttressed by profitable operations, strong capitalisation levels and good liquidity metrics. These, alongside a well-diversified earning asset portfolio, notwithstanding some weakening in asset quality, and a robust governance structure, further bolster the ratings.

Nonetheless, the ratings are tempered by sovereign concentration risk compounded by global economic uncertainty, which could constrain the AMBL Group’s financial performance in the year ahead.

Rating sensitivity factors:

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

• Improvement in the credit rating of the Government of Trinidad and Tobago.
• A material improvement in any of its main segments’ market share and AMBL Group’s overall financial performance.
• Material improvement in the financial performance and position of the ANSA McAL Group.

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

• Two years of sustained losses.
• A deterioration in the cost-to-income ratio above 50 per cent sustained for two years
• A more than 20 per cent increase in insurance service expense and/or a more than 50 per cent fall in NII, thus negatively impacting profitability.
• NPL ratio above eight per cent over the next 12-15 months.
• Downgrade in the rating of the Government of Trinidad and Tobago.
• Material deterioration in the financial performance and position of the ANSA McAL Group.

AMBL Group is a financial services group comprising parent firm ANSA Merchant Bank Limited and its subsidiaries. The bank was incorporated on March 3, 1977, and is domiciled in Trinidad and Tobago. Initially established as Amalgamated Finance Limited in 1999, the Bank was registered to conduct business as a securities company under the Securities Act 1995.

AMBL Group is majority-owned by ANSA McAL Limited, one of the largest conglomerates in the Caribbean. Both ANSA McAL Limited and AMBL Group are listed on the T&T Stock Exchange. ANSA McAL Limited comprises over seventy companies that are wholly or partly owned with operations in several industries across eight territories. 

Over the ensuing years, AMBL Group’s operations expanded to include insurance services through the acquisition of Trinidad and Tobago Insurance Limited (TATIL) and TATIL Life Assurance Limited (TATIL Life) from ANSA McAL Limited in 2004.

Subsequently, in April 2023, TATIL completed the acquisition of Colonial Fire & General Insurance Company Limited (COLFIRE) for an estimated TT $320 million, further expanding its reach in the insurance market.

As at December 2024, AMBL Group comprised nine subsidiaries in three countries, namely T&T, Barbados, and Saint Lucia. Further, its wide range of products and services is offered through four main segments, which include general insurance services, life insurance services, banking services and mutual funds.

The AMBL Group’s total assets stood at TT$9.2 billion as at December 2024, while total income generated in 2024 was TT$634.7 million. AMBL Group’s largest segment is general insurance, which accounted for approximately 63.2 per cent of the AMBL Group’s total revenue in 2024, followed by banking services (23.4 per cent) and life insurance (12 per cent).