CariCRIS Revises JN’s Rating Outlook to Negative from Stable; 'BBB+' Rating Affirmed

• Regional rating agency Caribbean Information and Credit Rating Services Limited (CariCRIS), has reaffirmed Jamaica National Group’s (JN) ratings at CariBBB+ (Foreign Currency Rating) and CariA- (Local Currency Rating) on the regional scale. However, it has revised the company’s outlook to negative from stable.
• CariCRIS stated in its release that the change in outlook is based on JN Group Limited’s subsidiaries reporting losses for 2 consecutive years. Additionally, this loss position is expected to persist over the next 12 months, albeit at a lower level.
• It went on to state that given the challenged earnings, the Group’s cost-to-income ratio is expected to remain elevated.
• Expansion of the Group’s product and service offerings and/or improvements in operating efficiencies, improvement in the Group’s cost-to-income ratio to 65% or below for at least 2 consecutive years, and changes to Jamaica’s sovereign rating are some of the main factors that would drive a change in the company’s credit rating.

(Source: CariCRIS)