14th April 2009
CariCRIS re-affirms the “high creditworthiness” ratings
for Eastern Caribbean Home Mortgage Bank
Issue Ratings (For notional debt size of USD 30 million or equivalent)
CariAA (Regional Scale Foreign Currency)
CariAA (Regional Scale Local Currency)
Caribbean Information and Credit Rating Services Limited (CariCRIS), the Caribbean regional credit rating agency, has re-affirmed the ratings of CariAA (Foreign Currency Rating) and CariAA (Local Currency Rating) on its Caribbean regional rating scale to the USD 30 million debt issue (notional) of Eastern Caribbean Home Mortgage Bank (ECHMB). The ratings indicate that the level of creditworthiness of this obligation, adjudged in relation to other obligations in the Caribbean is high.
The ratings on ECHMB continue to reflect the Bank’s low credit risk business model, excellent asset quality and its status as a regional financial institution with support from the premiere financial institution in the Eastern Caribbean Currency Union (ECCU). Also supporting the rating is the highly experienced and qualified management team that is well supported by a reputable Board of Directors (BOD). Additionally, ECHMB’s operational and underwriting systems are strong, underpinned by its legislative and operational framework. The ratings are tempered by the challenging market conditions and relatively high liquidity in a couple of markets contributing to a fair degree of geographic asset concentration. In addition, there are constraints on ECHMB’s resource–raising ability via public issues by competition from both corporates and sovereigns in the ECCU.
About the company: Eastern Caribbean Home Mortgage Bank (ECHMB) was created pursuant to the ECHMB Agreement Act (1995) and commenced operations on April 22nd 1996. Its primary objective is the development of the secondary mortgage market within 8 participating member countries of the Organization of Eastern Caribbean States (OECS) namely Anguilla, Antigua & Barbuda, The Commonwealth of Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia and St. Vincent and the Grenadines. ECHMB is a privately managed corporation and the current 63 shareholders are strictly financial institutions from the OECS as well as the wider Caribbean. These financial institutions includes the Eastern Caribbean Central Bank (ECCB), commercial banks, social security agencies, insurance companies, mortgage companies, building and loan associations and credit unions. The largest shareholder, the ECCB, holding 25%, is the premiere financial institution in the Eastern Caribbean Currency Union (ECCU).
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Or contact:
Arjoon Harripaul, Head-Ratings
Tel: 868-627-8879 Ext. 227
Sherry Ann Persad, Rating Analyst
Tel: 868-627-8879 Ext. 228
