Nov 2016 Financial News

NCB raises US$150 million backed by credit card receivables

Nov 23, 2016

On Monday Fitch Ratings assigned a ‘BB+’ or stable rating to the US$150-million series 2016-1 notes issued by Jamaica Merchant Voucher Receivables Ltd following National Commercial Bank Jamaica Ltd (NCBJ) successfully raising US$150 million by way of the securitisation of its credit card merchant voucher receivables.

Jamaica Merchant Voucher Receivables is a special purpose vehicle incorporated under the laws of the Cayman Islands, in private placement within the United States to qualified institutional buyers.

The transaction was placed in the international private placement market by their arranger Westwood Capital LLC. It was set for close on Monday, November 21 .

Fitch has also affirmed the rating of Jamaica Merchant Voucher Receivables Ltd’s outstanding series 2015-1 notes at ‘BB+’ and the series 2013-1 notes issued by Jamaica Diversified Payment Rights Company at ‘BB’. The financial group raised US$250 million from the receivables in 2015.

The rating outlook is stable. Fitch said NCBJ’s ratings reflected “the high influence of the operating environment, given its large exposure to the sovereign as well as its reach into the major sectors of the Jamaican economy.

“NCBJ has a going concern assessment (GCA) score of ‘GC1’, reflecting the bank’s position as a systemically important top-tier bank with around 40 per cent of system assets,” the ratings agency noted.

“NCBJ’s market-leading credit card franchise continues to support a growing level of international Visa and MasterCard merchant vouchers. Fitch expects debt service coverage ratios (DSCRs) to be approximately 5.9x. This calculation considers average rolling quarterly collections during the last four recorded quarters and the maximum quarterly debt service for the life of the programme,” Fitch stated.

Upon issuance of the series 2016-1 notes, NCBJ’s merchant voucher programme debt will represent approximately 9.9 per cent of its consolidated liabilities.

Source:
BY AVIA COLLINDER
collindera@jamaicaobserver.com
Business reporter 
Jamaica Observer
Wednesday November 23, 2016    

http://www.jamaicaobserver.com/business/NCB-raises-US-150-million-backed-by-credit-card-receivables_81312