TEXT-S&P revises Jamaica BICRA to Group '9' from Group '10'
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Analysis & Opinion
Citi risk measurement scheme warrants closer look
Europe should avoid eating its seed corn
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Financials ยป
Wed Nov 9, 2011 5:20am EST
(The following statement was released by the rating agency)
Nov 09-
OVERVIEW
-- We are reviewing our Banking Industry Country Risk Assessments after having published our updated methodology.
-- We are revising our BICRA on Jamaica to group '9' from group '10'.
-- We are also maintaining our economic risk score of '10' and assigning an industry risk score of '7'.
BICRA ACTION
On Nov. 9, 2011, Standard & Poor's Ratings Services revised its Banking Industry Country Risk Assessment (BICRA) on Jamaica to group '9' from group '10'. It has also maintained the economic risk score of '10'. In addition, it has assigned an industry risk score of '7'.
RATIONALE
We have reviewed the banking sector of Jamaica (B-/Stable/C) under our updated BICRA methodology. The BICRA groups summarize our view of the risks that a bank operating within a particular country and banking industry faces relative to those in other banking industries. They range from group '1' (the lowest risk) to group '10' (the highest risk). Other countries in BICRA group '9' are Paraguay, Venezuela, and Ukraine.
Our economic risk score of '10' for Jamaica reflects our "extremely high risk" assessment of the country's "economic resilience," "extremely high risk" of "economic imbalances," and a "very high risk" assessment of "credit risk in the economy," as our criteria define those terms.
Jamaican banks face the challenge of operating in cyclical industries such as tourism, bauxite mining, construction, and manufacturing, all of which have been bruised by the economic slowdown. In addition, we believe the country's heavy debt and debt-service costs pressure its economic prospects.
FINANCIALS
WE ARE MOVING UP>>>LOL
inShare
Share this
Analysis & Opinion
Citi risk measurement scheme warrants closer look
Europe should avoid eating its seed corn
Related Topics
Financials ยป
Wed Nov 9, 2011 5:20am EST
(The following statement was released by the rating agency)
Nov 09-
OVERVIEW
-- We are reviewing our Banking Industry Country Risk Assessments after having published our updated methodology.
-- We are revising our BICRA on Jamaica to group '9' from group '10'.
-- We are also maintaining our economic risk score of '10' and assigning an industry risk score of '7'.
BICRA ACTION
On Nov. 9, 2011, Standard & Poor's Ratings Services revised its Banking Industry Country Risk Assessment (BICRA) on Jamaica to group '9' from group '10'. It has also maintained the economic risk score of '10'. In addition, it has assigned an industry risk score of '7'.
RATIONALE
We have reviewed the banking sector of Jamaica (B-/Stable/C) under our updated BICRA methodology. The BICRA groups summarize our view of the risks that a bank operating within a particular country and banking industry faces relative to those in other banking industries. They range from group '1' (the lowest risk) to group '10' (the highest risk). Other countries in BICRA group '9' are Paraguay, Venezuela, and Ukraine.
Our economic risk score of '10' for Jamaica reflects our "extremely high risk" assessment of the country's "economic resilience," "extremely high risk" of "economic imbalances," and a "very high risk" assessment of "credit risk in the economy," as our criteria define those terms.
Jamaican banks face the challenge of operating in cyclical industries such as tourism, bauxite mining, construction, and manufacturing, all of which have been bruised by the economic slowdown. In addition, we believe the country's heavy debt and debt-service costs pressure its economic prospects.
FINANCIALS
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