Jamaica National Group Maintains Investment Rating Despite Rating Adjustment

The Jamaica National Group has preserved a solid investment rating from CariCRIS, albeit with a slight drop in its Issuer Credit Rating. Despite facing projected losses, the Group’s strategic divestments and governance reinforce a stable outlook for the future. CEO Earl Jarrett highlights ongoing efforts to strengthen financial positioning and expand membership services.

The Jamaica National Group has retained a favorable investment rating from the Caribbean Information and Credit Rating Services Limited (CariCRIS), despite experiencing a slight decline in its Issuer/Corporate Credit Rating. This rating revision occurred during the agency’s annual evaluation last week, which highlighted the Group’s sustained ratings of CariBBB+ for foreign currency and CariA- for local currency for 2024. However, there was a minor downgrade in the national scale rating to jmA for foreign currency and jmA+ for local currency.

CariCRIS assessed the overall creditworthiness of the Jamaica National Group as adequate, indicating a solid capacity to meet debt obligations both locally and regionally. The agency anticipates a stable outlook for the Group, primarily due to its strategic divestment plans involving its UK bank subsidiary and other ventures aimed at consolidating operations.

Although CariCRIS projects a financial loss for the current fiscal year, it suggests that the Group is likely to manage liquidity and capital positions effectively, potentially regaining profitability by March 2026. According to CariCRIS, the ratings reflect Jamaica National’s robust market presence within Jamaica and its international subsidiaries, reinforced by solid governance and risk management.

Earl Jarrett, the Chief Executive Officer of Jamaica National Group, expressed satisfaction with the ratings, noting, “We are pleased with the rating received as it reinforces the Group’s efforts to strengthen our financial position.” He emphasized ongoing plans to reorganize the Group, including divesting subsidiaries and enhancing financial inclusion for its members.

The recent decline in local ratings by one notch has been attributed to ongoing financial losses and a negative return on equity during the review period, alongside an increasing cost-to-income ratio. The Jamaica National Group remains committed to implementing strategies intended to bolster profitability through greater operational efficiency and innovation.

In conclusion, the Jamaica National Group demonstrates a commendable investment rating, maintaining its status despite a minor downgrade. The Group’s strategic initiatives and planned subsidiary sales are expected to enhance its financial outlook and stability. With leadership focused on financial inclusion and effective governance, Jamaica National shows promise for future profitability and growth, as reinforced by CariCRIS’s assessment.

Original Source: jamaica.loopnews.com