S&P upgrades Republic Bank

S&P said it corrected the long-term issuer credit rating on Republic Bank Ltd. by upgrading it to BBB+ from BBB as a result of its new corporate restructuring.

The agency also said it affirmed the bank’s A-2 short-term issuer credit rating.

The outlook remains negative.

The ratings reflect the bank’s strong business position based on its leading position in Trinidad and Tobago’s banking system and its diversified loan portfolio in the retail, commercial and mortgage sector, S&P said.

The bank’s capital and earnings assessment remains strong because it reflects an estimate for a risk-adjusted capitalization ratio of 14.4% for the next 12 to 18 months, the agency said.

S&P said it revised the risk position on the bank to adequate from moderate based on its stronger asset quality metrics than those of its domestic peers.

The bank’s funding is considered average and its liquidity is adequate, the agency added.

The bank continues having an important role and strong link to the government, S&P said.

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