NCB Global Finance assigned ‘good creditworthiness’ ratings

July 2nd, 2019    |   Related To: Caribbean Information and Credit Rating Services (CariCRIS)

MEDIA RELEASE

02 July 2019

NCB Global Finance assigned ‘good creditworthiness’ ratings

Caribbean Information & Credit Rating Services Limited (CariCRIS) has assigned initial Issuer/ Corporate Credit Ratings of CariA (Foreign and Local Currency) on the regional rating scale, and ttA on the Trinidad and Tobago (T&T) national scale to NCB Global Finance Limited (NCB Global).  These ratings indicate that the level of creditworthiness of this obligor, adjudged in relation to other obligors within T&T and the Caribbean is good.

The ratings of NCB Global Finance reflect the Company’s competitive advantage in its strong affiliation with the NCB Financial Group, a leading financial services provider in the region.  The Company’s healthy financial performance, continued profitability and good asset returns underpin the assigned ratings, as well as its diverse investment portfolio and high asset quality, characterised by a consistently low NPL ratio, well below that of the local industry.  Also adding to its overall good credit ratings is NCB Global’s low leverage and comfortable capitalisation, reflected in strong capital adequacy ratios.  The Company’s stable funding base, though small, adequately supports its operations and this is viewed favourably in arriving at the ratings. These rating strengths are tempered by the fact that NCB Global is a small player in a highly competitive market.  In addition, the Company’s significant asset/ liability maturity mismatch heightens short-term liquidity and refinancing risks, which is further exacerbated by its high level of institutional funding.

CariCRIS has also assigned a stable outlook on the ratings.  The stable outlook is predicated on our expectation of continued profitability of NCB Global Finance, as the entity increases its regional footprint through the rollout of its corporate strategy in T&T and the Southern and Dutch Caribbean.  By leveraging the brand power, Group-wide network, synergies and capabilities of the NCB Financial Group to achieve its own business objectives, NCB Global is well positioned to sustainably grow its operations in the years ahead.  Further, we expect NCB Global to maintain a generally stable credit profile over the next 12-15 months.

About the Company:

NCB Global Finance Limited (formerly AIC Finance Limited) (the “Company”) was incorporated in the Republic of Trinidad and Tobago on 5^th November 1982, and commenced operations in January 1983.  Effective 11^th August 1993, the Company was licensed as a financial institution under the Financial Institutions Act 1993, to conduct the following classes of business: finance house/ finance company, confirming house/ acceptance house, leasing corporation, mortgage institution and bureau de change.  On 26 August 2003, the Company was licensed as a merchant bank and thus permitted to engage in foreign exchange dealing.

On 13 December 2013, NCB Capital Markets Limited (the “Parent” or NCBCML)^[1], a wholly-owned subsidiary of National Commercial Bank Jamaica Limited (NCBJ), acquired 100% of the shareholding of AIC Finance Limited from AIC Financial Group Limited.  The Company was re-branded as NCB Global Finance Limited (NCB Global or NCBGF) in August 2014.  In January 2016, the Company was licensed as a Broker-Dealer.  This allowed NCBGF to conduct the following activities (1) Broker-Dealer as agent; (2) Broker-Dealer as principal; (3) Investment Adviser and (4) Underwriter.  In July 2018, the Central Bank of Trinidad and Tobago (CBTT) granted approval for the Company to be included in the group of Second Tier Primary Dealers.  This allowed the NCBGF to participate in up to 50% of the CBTT’s Open Market Operations (OMO) auctions.  NCBGF is regulated and supervised by the CBTT and the Trinidad and Tobago Securities Exchange Commission (TTSEC).

Through the employment of the ‘hub and spoke’ model, NCB Global operates primarily as an investment banking hub, serving Trinidad and Tobago, Guyana, Suriname and the Dutch Caribbean.  The Company’s principal activities include the provision of investment advisory, wealth management and investment banking services to high net worth individuals, corporate entities and central governments. 

For more information on the NCB Global Finance ratings, please visit www.caricris.com or contact:

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[1] NCBCML is the principal Brokerage, Asset and Wealth Management arm of National Commercial Bank Jamaica Limited (NCBJ) and has offered investment products and services to Jamaican institutions and individuals for almost 40 years.  NCBJ is the largest bank in Jamaica by assets and through its parent company, NCB Financial Group (NCBFG), has become a major financial services provider in the region.  The ultimate parent company is Portland Holdings Inc., incorporated in Canada and controlled by Hon. Michael A. Lee-Chin, OJ.