TTMB gets first CariCRIS rating: 'Good level of creditworthiness'

CARIBBEAN Information and Credit Rating Services (CariCRIS) has assigned its first credit rating to the new Trinidad and Tobago Mortgage Bank (TTMB).

The TTMB was rated CariAA- (foreign and local currency) on the regional rating scale, and AA- on the TT national scale.

They represent a high level of creditworthiness – one higher than the previous ratings assigned to the TTMF.

CariCRIS also issued a “stable outlook,” based on TTMB's “good financial performance expectations over the next 12-15 months” and “expected improvements in asset quality,” especially after it acquired Home Mortgage Bank (HMB).

CariCRIS reaffirmed HMB’s rating as CariA- on the regional scale and A- on the TT national scale.

“These ratings denote a good level of creditworthiness,” TTMB secretary Brent McFee said in a statement.

Credit ratings assigned by agencies like CariCRIS provide independent assessments of a company’s financial stability and ability to meet its debt obligations. They are critical for potential investors and stakeholders, as the ratings influence the cost of borrowing and the overall credibility of the institution.

Higher ratings signal a lower risk of default and provide confidence in a company's financial health.

HMB’s ratings of CariA- and A- are positive, indicating good creditworthiness, but slightly more risk than TTMB.

McFee noted that the TTMB and HMB merger is progressing and will be complete after the transfer of assets and liabilities. HMB will then be dissolved as a legal entity, with its operations fully integrated into TTMB.

McFee said TTMB chairman Patrick Ferreira “conveyed a positive outlook for the future.

“He highlighted that the first stage of the operationalisation merger between the two organisations has already shown tangible benefits, with this improvement in the credit rating from CariCRIS.

“Moreover, TTMB will continue to leverage the synergies of the organisations and anticipates that its consolidated financial performance will be bolstered by continued efforts in promotional activities and enhancements in operational efficiency, which are projected to drive asset growth.”

Ferreira said the company is dedicated to expanding opportunities for home ownership, home development, and financial advancement for all citizens of TT, with the ultimate aim of greeting generational wealth for everyone.”

Additionally, HMB's $300 million Collateralised Mortgage Obligation (CMO), known as CMO 2020-01, was upgraded to ttAA- (SO) on the national scale, reflecting its improved credit profile after successful debt repayments.

The CMO, backed by mortgage loans, is a key part of HMB’s financial operations.

The TTMB was formed by the merger of the TT Mortgage Finance Company (TTMF) and HMB. The merger was designed to consolidate their operations and strengthen their ability to provide mortgage services.