Sagicor Life retains high creditworthiness rating
Sagicor Life Jamaica had its rating of jmAAA reaffirmed by rating agency Caribbean Information and Credit Rating Services Limited (CariCRIS) yesterday, following a debt issue of US$75 million.
The rating indicates that the level of creditworthiness of this obligation, adjudged in relation to other obligations within Jamaica is the highest.
According to CariCRIS, the rating includes a credit uplift for implied support from SLJ’s parent company, Sagicor Financial Corporation (SFC), through its controlling interest in Sagicor Group Jamaica Limited (SGJ).
The rating was also supported by SLJ’s overall financial stability, continued healthy profitability and improved financial strength, as measured by its strong capitalisation level.
In addition to retaining the highest creditworthiness rating, CariCRIS has also maintained a stable outlook on SLJ’s ratings, reflecting the company’s market leadership in the Jamaican insurance industry.
CariCRIS noted that the stable outlook is based on the expectation that SLJ will likely have a steady and predictable revenue stream with modest growth over the next 12 months, consistent with its three-year trend.
“We expect the Company to continue to perform well, driven primarily by its overall leading market position in the insurance industry in Jamaica,” it said.
These supporting factors CariCRIS said are, however, tempered by SLJ’s significant business and financial exposure to the highly indebted Jamaican economy.
“In addition, the protracted low-interest rate environment in Jamaica has the potential to challenge SLJ’s position going forward, thereby adversely impacting its long-term business,” it warned.