By: Kimberly Ramkhalawan
September 9, 2022
The Development Bank of Jamaica Limited (DBJ) has been reaffirmed the assigned Issuer/Corporate Credit ratings at CariBBB+ (Foreign Currency Rating) and CariA- (Local Currency Rating) by regional rating agency, CariCRIS.
According to the report issued this week , the regional scale ratings indicate that the level of creditworthiness of this debt issue, adjudged in relation to other debt obligations in the Caribbean, is good.
With regards to its national ratings, CariCRIS issued a ‘jmAA’ (Local Currency Rating) and ‘jmAA-‘ (Foreign Currency Rating) on the Jamaica national scale to the US $5 million debt issue of Development Bank of Jamaica Limited.
The Jamaica national scale ratings indicate that the creditworthiness of the debt of DBJ, adjudged in relation to other debt obligations in Jamaica is high. These ratings include a 2-notch uplift for the high likelihood of support, if needed, from its sole shareholder, the Government of Jamaica.
CariCRIS says the stable outlook is based on its “expectation that the Bank will continue to display good profitability and capitalization levels; supported by anticipated improvements in economic activity over the next 12 to 15 months despite ongoing uncertainties the coronavirus (COVID-19) pandemic ad Russia/Ukraine conflict present. CariCRIS expects the Bank will continue to play an important role in the development of the Jamaican economy”
It adds that the DBJ’s ratings reflect the Bank’s continued strategic importance to the Government of Jamaica in the divestment of state assets and the allocation of capital to strategic investments. The ratings are also underpinned by what it describes as ‘DBJ’s sound risk management framework, strong capital base which is supported by a healthy capital adequacy ratio and good liquidity metrics’. The Bank’s comfortable financial performance in 2021 supported by lower NPL levels further support these ratings. The ratings are tempered by prevailing global and domestic economic conditions which can present downside risks to the profitability and growth of DBJ.
Development Bank of Jamaica Limited (DBJ) is a limited liability company domiciled in Jamaica and 100 percent owned by the Government of Jamaica (GOJ). It was formed on April, 2000, from the merger of the operations and selected assets and liabilities of the National Development Bank of Jamaica Limited and the Agricultural Credit Bank of Jamaica Limited. DBJ expanded further on September, 2006, when it took over the operations and selected assets and liabilities of the National Investment Bank of Jamaica Limited. DBJ has a 50 percent shareholding in Harmonization Limited, a property development company.