By Javaughn Keyes
Listed micro-lender firm Access Financial Services has received an adequate rating from Caribbean Information and Credit Rating Services (CariCRIS).
The company adjudicated the creditworthiness for both local and foreign currency instruments.
In its latest assessment published last week, CariCRIS has reaffirmed its CariBB+ assigned issuer/corporate credit rating, for Access Financial Services on a regional scale for foreign currency.
The ratings agency also kept its CariBBB- rating for Jamaican currency creditworthiness.
CariCRIS says the regional scale local currency rating indicates that the level of creditworthiness in the Caribbean is adequate, and the regional scale foreign currency rating indicates below average relative creditworthiness.
As for creditworthiness in Jamaica, CariCRIS rated Access Financial's also at adequate for foreign currency at jmBBB.
A rating of jmBBB+ was assigned for local currency.
CariCRIS says the national scale ratings indicate that the level of creditworthiness is adequate.
This is in relation to other obligors or entities which may be bound to provide payment on a loan or other instruments in Jamaica.
As for its outlook for the listed micro-credit institution, CariCRIS has assigned a stable projection on the ratings.
The report says this is based on the expectation of good financial performances continuing.
The view was supported by sustained growth in the overall loans and advances portfolio at Access Financial, supported by the implementation of its digital transformation initiatives.
CariCRIS expects Access to maintain good asset quality, adequate capitalization and liquidity metrics over the next 12 to 15 months, suggesting it will comfortably meet any debt obligations as they come due.
CariCRIS says an improvement in the credit risk profile of the Government of Jamaica, improving business conditions over the next 12-15 months, and diversity in Access Financial's revenue streams could individually, or collectively lead to an improvement in the ratings.
That outlook could be negatively affected by a deterioration in the credit risk profile of the Government of Jamaica, a negative change in Access' debt or Tangible Net Worth.
A drop of more than 20 per cent in Access Financial Services' net loans and advances would also negatively affect the group.
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