CariCRIS reaffirms ‘adequate’ creditworthiness for Eastern Caribbean Home Mortgage Bank

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PORT OF SPAIN, Trinidad — Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed the ratings assigned to the USD 30 million debt issue of Eastern Caribbean Home Mortgage Bank (ECHMB or the Bank) of CariBBB+ on the regional rating scale (Foreign and Local Currency Ratings).

These ratings indicate that the level of creditworthiness of this obligation, adjudged in relation to other obligations in the Caribbean, is adequate.

CariCRIS has also maintained a stable outlook on the ratings. The stable outlook is based on our expectation that ECHMB will continue to display comfortable profitability and capitalization levels over the next 12 months, which will be supported by comfortable liquidity, with improvements in risk and investment portfolio management measures despite the negative impact of the coronavirus (COVID-19) pandemic on the markets and economies of the Eastern Caribbean.

The reaffirmation is driven by the consistent growth in the Bank’s asset base underpinned by a relatively diversified investment portfolio. ECHMB adequate liquidity levels and generally favorable cost of funds, healthy financial performance as well as its adequate risk management and governance structures further support the ratings. These rating strengths are tempered by the Bank’s elevated exposure to financial risks arising from difficult economic conditions in the US and OECS despite enhanced diversification efforts.

The full report is available ECHMB_Media_Release_Oct_2020_

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