The Caribbean Information and Credit Rating Services (CariCRIS) has upgraded by a notch the assigned issuer/corporate credit ratings to CariBBB- (foreign currency rating) and CariBBB (local currency rating) on the regional rating scale and jmBBB+ (foreign currency rating) and jmA- (local currency rating) on the Jamaica national rating scale of Access Financial Services Limited.

The regional scale local and foreign currency ratings indicate that the level of creditworthiness of this obligor, adjudged in relation to other obligors in the Caribbean, is adequate. The national scale local currency rating indicates that the level of creditworthiness of this obligor, adjudged in relation to other obligors in Jamaica, is good. The national scale foreign currency rating indicates that the level of creditworthiness of this obligor, adjudged in relation to other obligors in Jamaica, is adequate.

The one-notch upgrade of the ratings is primarily attributable to an improvement in Access Financial Services’ financial risk profile over the past year, underpinned by the group’s consistent loan growth.

This resulted in AFS’ second consecutive year of growth in profit after tax (PAT) and fourth consecutive year of an increase in total income, with PAT materially surpassing CariCRIS’ FY2025 forecast and achieving its highest level to date.

CariCRIS has also assigned a stable outlook on the ratings. The stable outlook is premised on the high likelihood of continued good financial performance by the group over the next 12 to 15 months. This is underpinned by increased growth in the overall loans and advances portfolio, supported by continued marketing and promotional efforts together with generally good economic conditions in Jamaica, its main market. 

Additionally, CariCRIS expects AFS to maintain good asset quality, adequate capitalisation and liquidity metrics over the next 12 to 15 months, comfortably meeting debt obligations that come due. The ratings of AFS reflect the Group’s continued favourable market position within the microfinance sector, underpinned by its longstanding history and good brand equity.

Sustained growth in AFS’ earning asset base alongside good asset quality, despite some deterioration, and improved financial performance, marked by income and profitability growth, further bolsters the ratings. Moreover, adequate capitalisation and liquidity levels together with a satisfactory governance structure and risk management practices also drive the ratings.

Nonetheless, AFS’ small size and high-risk business model with limited revenue diversification, together with concentrated sovereign risk exposure, constrain the ratings. These factors can temper AFS’ growth potential and overall profitability in the year ahead, notwithstanding generally good economic conditions in Jamaica.

Rating sensitivity factors:

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

• An improvement in the credit risk profile of the Government of Jamaica
• Improving business conditions over the next 12-15 months, thereby leading to growth in total loan portfolio > 15 per cent and/or sustained earnings growth > 15 per cent over the next two years
• Diversity in revenue streams through the successful launch of new products or new business lines.

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

• A deterioration in the credit risk profile of the Government of Jamaica
• Change in AFS’ debt/ TNW or TNW/Total Assets ratios > 1.5 times or < 30 per cent respectively
• A sustained decrease in yield from interest-earning assets > 600 basis points over the next 12-15 months, thereby leading to a compression of the net interest spread earned
• A fall in AFS’ net loans and advances > 47 per cent
• A deterioration in AFS’ Gross NPLs/Gross Loans ratio to > eight per cent

In keeping with its long-term growth strategy, AFS acquired 100 per cent shareholding of its subsidiary, Embassy Loans Incorporated (Embassy) in 2018. Embassy is a consumer finance company located in Florida and licensed under the Florida Consumer Finance Act.

The company offers auto equity loans in Florida. Notably, on July 29, 2022, AFS was the first company to be approved as a licensed microcredit institution by the Bank of Jamaica (BOJ), under the Microcredit Act 2021.

As at March 2025, the two largest shareholders of AFS were Springhill Holdings Limited (47.33 per cent) and PROVEN Investments Limited (24.72 per cent).

AFS operates an island-wide retail network of 17 branches in Jamaica and has disbursed in excess of J$15 billion in loans since inception to the microfinance sector, a sector which contributes to the economic growth and development of the island.

As a non-deposit taking institution, funding is derived from debt financing through non-governmental financial institutions and the Development Bank of Jamaica (DBJ), which is 100 per cent owned by the Government of Jamaica (GOJ).

AFS reported total assets of J$7.6 billion as at March 2025 and total income of J$2.5 billion in FY20252, which, 13.3 per cent of total assets and 13.9 per cent of total income were derived from Embassy.