CariCRIS maintains rating on Republic Bank bond
Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed its AA+ creditworthiness on Republic Bank Limited’s (RBL) TT$1 billion debt issue, based on its strong market position in Trinidad & Tobago, Barbados, Grenada and Guyana.
CariCris said the ratings were also supported by the bank’s healthy resource base, marked by a high proportion of retail deposits and geographical diversity, comfortable capitalization reflected in good coverage of total assets and high capital adequacy ratios.
“RBL has maintained good profitability measures, albeit at lower levels relative to the pre-crisis period, given the challenging regional macroeconomic environment,” said the rating services, in a release on Tuesday.
“Tempering the ratings is the relatively weak asset quality in two of its subsidiaries, though at the group level it is comparable with its peers,” the agency said.
Loan loss provision coverage declined to just below 50 per cent in financial year 2011, comparable to its regional peers, but exceed 100 per cent if the general contingency reserve account is included.
Republic Bank is among the leading banking groups in the region. In terms of asset base, it is the second largest in Trinidad & Tobago as well as Barbados.
Subsidiaries in Grenada and Guyana maintain strong leadership positions in those countries. The operations in Trinidad & Tobago are the largest, contributing around 66.6 per cent to total assets in financial year 2011.
Assets of the operations in Barbados and other regions accounted for 17.6 per cent and 15.8 per cent respectively of the bank’s total assets in the last financial year.
Ratings for Republic Bank on both foreign and local currency remain at CariAA+.