Story courtesy of
Caribbean Information & Credit Rating Services Limited
Caribbean Information and Credit Rating Services Limited (CariCRIS), the Caribbean regional credit rating agency, has assigned 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 reflect the Bank’s low credit risk business model, excellent asset quality and its status as a regional financial institution with support from the Eastern Caribbean Central Bank (ECCB), 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.
CariCRIS’ CEO, Wayne Dass, commented that “ECHMB’s management must be congratulated for taking this important initiative as it bodes well for strengthening and improving transparency in the capital markets and for bond market development. Their decision to seek a public rating reflects a high standard of corporate governance and sets an important precedent for other corporates and sovereigns in the OECS and the wider region to follow.”
Commenting on the occasion, ECHMB’s CEO, Duleep Cheddie, said “ECHMB’s mandate is to promote the development of the secondary mortgage market in the member states and bring additional benefits by facilitating the development of the money and capital market, improving liquidity management in the financial system and promoting home ownership throughout the member states. A high credit rating should have the dual effect of reinforcing ECHMB’s image as an investment of choice in the region and rationalizing pricing on its bond issues.”
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 eight 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.
