Downgrade Kills Jamaica ABS

Downgrade Kills Jamaica ABS

Structured Finance

NCB’s plans to tap the DPR market for a $50m 7-year final issue appear to have been derailed by Moody’s sovereign downgrade, which took place Wednesday. An executive familiar with the bank’s plans says the deal has been shelved following the rating agency’s move to chop Jamaica to B2 (stable) from B1. With the sovereign at B1, NCB’s DPR would only be able to achieve a maximum rating of Ba2. Had it been issued a week ago, the offering might have achieved Baa3, which complies with program document

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