The Jamaica National Group retains its investment ratings from CariCRIS despite a slight downgrade in national ratings. Outlook remains stable due to strategic divestments. CEO Earl Jarrett emphasized plans for reorganization and a commitment to returning to profitability by March 2026.
The Jamaica National Group (JN) has managed to preserve its overall investment rating status from the Caribbean Information and Credit Rating Services Limited (CariCRIS), despite a decrease in its Issuer/Corporate Credit Rating. The regional ratings for 2024, namely CariBBB+ (foreign currency) and CariA- (local currency), remained unchanged, while national scale ratings slightly dropped to jmA (foreign currency) and jmA+ (local currency). CariCRIS assessed the Group’s creditworthiness as good and adequate for fulfilling its local and regional debt obligations.
CariCRIS has forecasted a stable outlook for JN, citing the divestment of its UK banking subsidiary and plans for further subsidiary divestments as factors contributing to this stability. Despite expectations of a loss in the current financial year, the Group is poised to improve its liquidity and capital positions, with forecasts of returning to profitability by March 2026. A statement indicated that JN’s ratings highlight the Group’s strong market position in Jamaica and its operations in the USA, UK, and the Caribbean.
Earl Jarrett, the Chief Executive Officer of the Jamaica National Group, expressed satisfaction with the rating, emphasizing its affirmation of the Group’s efforts to improve its financial standing. Jarrett mentioned ongoing plans to reorganize the Group, including the sale of some subsidiaries, to enhance financial inclusion for all members. The local rating decline was attributed to ongoing post-tax losses and poor returns on equity, as well as increases in the cost-to-income ratio and regulatory capital adequacy ratio of JN Bank.
The Jamaica National Group is dedicated to implementing strategies to boost profitability through operational restructuring, expanding profitable business lines, and enhancing innovation in its service delivery. These efforts demonstrate the Group’s commitment to overcoming current challenges and achieving financial resilience moving forward.
The Jamaica National Group has successfully maintained its investment rating from CariCRIS despite a local rating dip. The outlook remains stable due to strategic divestments and planned improvements in financial performance. CEO Earl Jarrett reiterated the Group’s commitment to reorganizing for efficiency and boosting financial inclusion, indicating a proactive approach to restore profitability by March 2026.
Original Source: jamaica.loopnews.com
