The technology-driven credit rating agency DataPro recently issued a study in which it rated LivingTrust Mortgage Bank Plc as having a long-term rating of "BBB+" with a Stable Outlook for the years 2021–2022.
The BBB+ grade, which exhibits acceptable financial health, operational effectiveness, and corporate profile, implies low risk.
When compared to the benchmark set by DataPro, this
“This Company, in our opinion, can meet its ongoing obligations, but its financial strength is vulnerable to adverse changes in economic conditions,” DataPro said in its report.
The DataPro Rating Committee approved the rating after an assessment of the company’s Financial Performance, Capital Adequacy, Asset Quality, Liquidity, Profitability, Corporate Governance and Risk Management as well as Risk Factors of its current healthy profile in the medium to long-term period.
The report noted that LivingTrust Mortgage Bank recorded significant growths in all its Key Financial Indicators in the year 2021, adding: “This was due to its ability to draw funding for its operation through the combination of Deposit Mobilization and on-lending Facilities.
“Consequently, the Bank was able to grow its Total Assets, Loans and Advances and Equity by 81%, 93% and 16% respectively.
“These growths influenced increase in Gross Earnings and Profit Before Tax during the year under review.”
The rating agency added that the rating of LivingTrust Mortgage Bank is supported by the Bank’s Liquidity Position, Good Profitability and Asset Quality.
“LivingTrust Mortgage Bank Plc had a short-term rating of ‘A2’ which indicates Fair Credit Quality and Adequate Capacity for timely payment of financial commitments,” DataPro further stated.
It noted that the rating carries a maximum shelf life of 12 calendar months, in line with international best practice, adding: “The Rating is therefore not an offer to trade in securities nor a substitute for the user’s judgement. It is meant for reference purposes.”