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CariCRIS

Rating agency Caribbean Information and Credit Rating Services Ltd (CariCRIS) has reaffirmed “good creditworthiness” ratings to the US $120 million bond issue of JMMB International Ltd.

In a release, CariCHIS said the national scale rating indicates good creditworthiness compared to other obligors in Jamaica.

It added that the assigned ratings benefit from a two-notch credit uplift due to the full guarantee of the bond issue by its parent, JMMB Group Ltd (JMMB GL).

CariCRIS has also maintained a stable outlook on the ratings.

The stable outlook is premised on CariCRIS’ expectation that over the next 12 to 15 months JMMBIL will continue to record stable financial results, supported by dividend income and share of profits from the inclusion of the 22.5 per cent ownership of Sagicor Financial Company (SFC) in its earning assets portfolio.

“Additionally, we expect that the performance of the parent entity, JMMB GL, will add to the stability of JMMBIL’s credit profile over the next 12 to15 months,” CariCHRIS said.

The ratings are supported by the company’s strong affiliation to the JMMB Group Ltd, which supports its growth and sustainability.

“JMMB Group Ltd also provides a full guarantee to JMMBIL for the US $120 million bond issue.

Further supporting the rating is the company’s continued good financial performance underpinned by good asset returns, as well as the company favourable resource base with adequate capitalisation,” CariCHRIS said.

It added that these rating strengths are tempered by the possibility for structural subordination of cash flows and refinancing risk given the bond’s structure and exposure to the downside risks of the Jamaican and T&T economies.

In June of 2020, JMMBIL issued a bond in the amount of US $120 million, in two equal tranches of US $60 million each, maturing in June 2023 and June 2025.