CariCRIS reaffirms credit rating for Bourse Securities

Caribbean Information and Credit Rating Services Ltd (CariCRIS) has reaffirmed the credit ratings assigned to Bourse Securities Ltd at CariA on the regional rating scale and ttA on the national scale.

In a release, CariCRIS said these ratings indicate a "good" level of creditworthiness of this obligor, adjudged in relation to other obligors in the Caribbean and within TT.

It also maintained a stable outlook on the ratings.

CariCRIS said the stable outlook is based on the high likelihood that Bourse Securities will continue to be profitable and report strong capitalisation levels over the next 12 to 15 months, even under CariCRIS’ stress scenarios.

Additionally, the company is expected to maintain its good asset risk profile over the next 12 to 15 months, CariCRIS added.

"The ratings of Bourse Securities reflect the company’s good financial performance, underpinned by good income diversity and efficiency levels, notwithstanding lowered profitability in

2024," the release said.

CariCRIS added that the ratings are supported by Bourse Securities' comfortable risk-adjusted capitalisation level, reflected in a strong capital adequacy ratio, good coverage of total assets and low gearing.

"The company’s asset quality remains good and continues to be underpinned by a diverse investment portfolio, supported by sound risk management and asset-liability management practices.

"These have contributed positively to Bourse Securities' overall good liquidity profile," CariCRIS said.

It added that these rating strengths are tempered by the company’s high reliance on institutional funding to support its business activities.

"Notwithstanding this concentration, which is characteristic of Bourse Securities' business model, the risk remains well managed," the release said.