The Jamaica National Group has retained its investment rating from CariCRIS despite a dip in its corporate credit ratings. The agency’s review confirmed ratings of CariBBB+ and CariA-. The outlook remains stable due to the Group’s initiatives to restructure and drive profitability. CEO Earl Jarrett highlighted ongoing efforts to enhance financial stability and inclusion for members.
The Jamaica National Group has successfully upheld its stable investment rating from Caribbean Information and Credit Rating Services Limited (CariCRIS), notwithstanding a slight dip in its Issuer/Corporate Credit Rating. Following an annual review, the agency reported ratings of CariBBB+ (foreign currency) and CariA- (local currency) for 2024, although the national scale rating decreased to jmA (foreign currency) and jmA+ (local currency).
CariCRIS rated the Group’s creditworthiness as good and adequate concerning its local and regional debt obligations. The outlook remains stable, influenced by the divestment of its UK bank subsidiary, as well as plans for further divestitures of subsidiary companies. The agency anticipates a possible loss in the current financial year, yet expects a return to profitability by March 2026, pending improvements in liquidity and capital positions.
Earl Jarrett, Chief Executive Officer of the Jamaica National Group, expressed satisfaction with the rating, affirming it reinforces their financial stabilization efforts and plans for organizational restructuring to enhance financial inclusion among members. He noted advancements in reorganizing the Group, involving subsidiary sales, to improve efficiency and profitability.
The recent decline in the Group’s local ratings by one notch can be attributed to ongoing losses following tax and a negative return on equity. The Group’s cost-to-income ratio and the increase in JN Bank’s regulatory capital adequacy ratio were also critical factors influencing the assessment of its overall rating.
The Jamaica National Group remains committed to implementing plans that enhance profitability, focusing on efficient reorganization, business expansion, and innovative product delivery.
In summary, despite experiencing a decline in specific ratings, the Jamaica National Group maintains a strong overall investment rating from CariCRIS. The organization is focused on improving its financial situation through strategic restructuring and expansion initiatives. With a projected return to profitability anticipated by March 2026, the Group is optimistic about its future performance in local and regional markets.
Original Source: jamaica.loopnews.com
