VMIL gets investment grade credit ratings from CariCRIS
Victoria Mutual Investments Limited (VMIL) has been assigned rating of CariBBB- (local currency) by the Caribbean Information and Credit Rating Services Limited (CariCRIS) on its regional scale.
The regional rating firm also assigned ratings of jmBBB+ (local currency) and jmBBB (foreign currency) on the Jamaica national scale. Additionally, VMIL was assigned a stable outlook on the ratings with the expectation that it will remain profitable and adequately capitalised over the next 12 to 15 months.
CariCRIS said the company is also expected to see growth in its interest-earning asset base and in earnings on the part of its subsidiary, Victoria Mutual Wealth Management, as in line with the company’s strategic direction.
“This investment grade rating will be leveraged to improve the competitive positioning of VMIL as we embark on our various strategic imperatives for the medium term. Additionally, the framework provided will be utilised in our strategic planning process to guide the growth of VMIL,” Chief Executive Officer Rezworth Burchenson said in response to the ratings.
CarCRIS, which recently opened its Jamaican office located in the PanJam building in New Kingston to better serve its growing local clientele, further said that the ratings assigned to VMIL reflect its position as a growing player in the Jamaican financial services sector with strong support from parent company Victoria Mutual Building Society (VMBS). CarCRIS also noted that VMIL showed a history of good financial performance and has adequate capitalisation levels.
VMIL, an investment and financing company incorporated in 1984, offers a wide range of financial solutions, including margin loans, insurance premium financing, lease financing and corporate loans; as well as underwriting services. The company is 80 per cent owned by VMBS with the other 20 per cent owned by various institutional and individual investors.
Listed on the Main Market of the Jamaica Stock Exchange (JSE) since 2017, VMIL at the end of its first quarter period ended in March turned profits of $89.6 million and consolidated revenues of $482.4 million, which represent $214 million more than the corresponding period last year. Total assets up to the three-month period amounted to $27.5 billion.
“The first quarter of 2021 saw an improved investment climate, when compared to 2020, with rising bonds and equity prices coupled with an increasing appetite for capital market transactions. Our various initiatives at regional market penetration, sales productivity improvement, digitalisation, investment management performance and timely capital allocation, are yielding varying degrees of success,” Burchenson said of the results.