By Ryan Hamilton-Davis

Copyright newsday

S&P Global, the data, analytics and economic ratings company, has given First Citizens bank, a subsidiary of First Citizens Group Financial Holdings Ltd (FCGFHL), a rating of “BBB” or “stable,” S&P Global said in a ratings report on September 8.

The ratings company said First Citizens’ very strong capitalisation helps its creditworthiness, especially in distressed scenarios. It added that it also has good business diversification and market position as the second-largest bank in the TT banking system. Its large base customer deposits was also a benefit.

On the other hand, S&P said TT’s reliance on the energy sector could jeopardise the stability of business and operating conditions. It said asset quality could deteriorate amid sluggish domestic and employment recovery. It said another risk to the bank’s credit rating was a high single-name loan concentration because of corporate lending focus, which could make asset quality and capitalisation volatile.

“The stable rating outlook on First Citizens for the next 24 months mirrors that on TT, reflecting our view that the economy will continue to have low growth, moderate fiscal deficits and a slowly increasing debt burden over the next two years, while energy exports will support the country’s external balances,” S&P said.

It said it expected a broad continuity in key economic policies.

“We think the bank will continue to benefit from sound capital, liquidity and credit loss reserves, protecting its creditworthiness from hypothetical strains on asset quality.

“In addition the bank has adequate income diversification, a strong market position in the domestic banking system, and a diversified funding base.”

In August, First Citizens bank and FCGFHL’s chief executive officer Karen Darbasie stepped down.

In a statement on August 27 the Ministry of Finance identified attorney Shankar Bidaisee, current chairman of the Urban Development Corporation of TT (Udecott), as FCGFHL’s new chairman.

Professor Sterling Frost, deputy chairman nominee, human resource team leader Crystelle Smith, insurance executive Prakash Dhanrajh, fast-food executive Sandy Roopchand, management executive Jo-Anne Boodoosingh, business executive Javan Lewis and business consultant Nichelle Granderson were appointed as board members of the financial holdings group. A special shareholders meeting is expected to be held to elect the leadership of the bank.