CariCRIS reaffirms stable outlook for TTMF

Caribbean Information and Credit Rating Services Ltd (CariCRIS) has reaffirmed the assigned credit rating of CariA+ on its regional rating scale and ttA+ on the national scale to the TT Mortgage Finance Company Ltd (TTMF).

CariCRIS in a release said TTMF continues to maintain a stable outlook which reflects its moderate market position in TT’s real estate mortgage market, underpinned by its crucial role in the implementation of the national housing policy.

“Further supporting the ratings are the TTMF’s comfortable capitalisation levels reflected in its high capital adequacy and good capital coverage to total assets as well as its healthy financial performance in 2022 underpinned by improved profitability metrics and reduced funding costs,” the release said.

CariCRIS said the outlook is based on its expectation that TTMF will continue to display healthy financial performance with gradual improvements in asset quality over the next 12-15 months.

“This is supported by ongoing marketing initiatives and continued improvements in economic activity which are expected to boost demand for mortgages, despite current geopolitical uncertainties and inflationary pressures. Furthermore, TTMF is expected to remain well capitalised and continue to comfortably cover its debt obligations as they come due,” the release said.

However, CariCRIS said the rating strengths are tempered by TTMF’s asset/liability mismatches – which increase exposure to potential liquidity risks given its high reliance on debt financing – and the lack of geographic diversity in its revenue and funding base which exposes TTMF to significant sovereign risk.