CariCRIS has maintained the regional scale issuer ratings assigned to JMMB Group of CariA- (regional local currency) and CariBBB+ (regional foreign currency) and jmAA- (local currency rating) and jmA+ (foreign currency rating) on the Jamaica national scale.

The Caribbean Information and Credit Rating Services (CariCRIS) scale ratings indicate ‘good creditworthiness’ of JMMB Group compared to other similar entities in the Caribbean.

While, on the national scale ratings, the regional financial conglomerate has been assigned a ‘high level of creditworthiness,’ according to a statement issued by CariCRIS earlier in December. 

The statement further outlined, “The ratings of the group continue to reflect its strong brand equity and long history of operations in the Jamaican securities industry. The group’s strong brand has facilitated its expansion into the wider Caribbean region and positioned it as an emerging player. (Additionally), the group’s ratings also reflect its well-diversified asset portfolio, characterised by good asset quality and good financial performance, notwithstanding a 45.9 per cent decline in (profit after tax) PAT over the last financial year. Furthermore, JMMBGL’s governance structure, risk management practices and capitalisation remain robust.” 

The rating agency also assigned a stable outlook, based on the expectation that over the next 12-15 months the group is likely to continue to record good financial performance and capitalisation levels. Additionally, the continued recovery of the Jamaican economy is expected to positively impact the Group’s performance.  

Group CEO Keith Duncan, in responding to the positive review from CariCRIS, notes, “These ratings underscore the company’s stable foundation and solid diversification strategy, bolstered by our SMART growth initiatives that continue to add shareholder value and we expect it to further strengthen investor confidence, over the long-term.”

“We remain committed to serving our clients with best interest and providing innovative financial solutions that meet their need. Our talented and dedicated team has driven our win-win partnerships, enabling us to maintain credible financial performance, even in challenging times,” Duncan added.  

The affirmed ratings, according to CariCRIS were tempered by the group’s funding base which is characterised by moderate concentration in repurchase agreements (repo) instruments, contributing to assets/liabilities mismatches, coupled with the prevailing economic conditions in the territories in which the group operates.