Caribbean Information & Credit Rating Services Limited Partnering for Growth and Financial Soundness – The Role of CariCRIS Wayne Dass, CFA CEO – CariCRIS Ltd 27 June 2011

Our Mission To contribute to the development of a vibrant, integrated Caribbean capital market by setting the highest standards of credible independent analysis and opinion to enable informed financial decisions. 2

3 Role of our Credit Ratings in the region To help companies access funding at lower interest rates from the capital market by way of corporate bonds Will help to create a secondary bond market –Creates liquidity in bond portfolios –Leads to clarity in pricing of credit risk –More resilience in financial system

4 Central Banks –Central Bank of T&T –Central Bank of Barbados –Eastern Caribbean Central Bank Commercial Banks –Capital & Credit Merchant Bank –Citibank T&T –First Caribbean International Bank –First Citizens Bank –Inter Commercial Bank –NCB Jamaica –RBTT Bank –Republic Bank –Scotiabank, T&T Mutual Funds/Unit Trust –Fortress Fund, Barbados –Unit Trust Corporation, T&T Insurance/Conglomerates –CL Financial –Guardian Holdings Limited –National Insurance Board, T&T –New India Assurance –Sagicor Life Inc Multilateral Agencies –Caribbean Development Bank –Inter-American Development Bank Brokerage Houses –First Citizens Investment Services –JMMB Stock exchange –T&T Stock Exchange Technical Consultant –CRISIL Shareholding By Regional & International Players

5 Our Governance Structure OPERATIONS AUDIT & PROCESS QUALITY CONTROL CODE OF CONDUCT & BEST PRACTICES TRANSPARENCY OF CRITERIA Board of Directors Shareholders Rating Committee Management

Our Developmental Impact CariCRIS has deepened the credit ratings market in the region by completing 88 ratings in 10 countries and in diverse sectors 6

7 Ratings by Country

8 Ratings by Entity

9 Sectoral Distribution

How we can add value to the Credit Union sector 1.Sector Study by country or region - Creditworthiness Assessment & Ranking 2.Private Credit Assessment of individual Credit Unions 3.Training 4.Bond Valuation Service 5.Risk Software Solutions 10

1. Creditworthiness Assessment & Ranking Addresses the need to focus scarce supervision resources on credit unions that really need the help Assessment of creditworthiness of credit unions and ranking into 5 categories –Category 1 – Excellent –Category 2 – Above Average –Category 3 – Average –Category 4 – Below Average –Category 5 - Poor 11

1. Creditworthiness Assessment & Ranking Forward looking assessment –Early indication of members with potential problems (Categories 3, 4 & 5) –Intervention programmes can be designed and implemented by each League 12

1. Creditworthiness Assessment & Ranking Parameters considered: –Resource Raising Ability –Asset Origination Ability –Operating Efficiency –Earnings & Liquidity –Risk Management –Capital Adequacy –Management Quality 13

2. Private Credit Assessment of Credit Unions Independent diagnostic of business Assessed on the same parameters as before but in more detail Comprehensive report with identification of key strengths/weaknesses provide a framework for performance improvement Compliance with prudential criteria 14

3. Training Fundamentals of Risk Management –Targeted at Directors, Supervisory & Credit Committee Members, Risk Managers –Understanding the nature of financial risk and risk management –Building a risk management framework –Elements of a strong risk culture –Credit risk, market risk, operational risk, liquidity risk, asset-liability risk –Enterprise risk management 15

3. Training Corporate Credit Risk Analysis –Targeted at risk managers, analysts, compliance officers, lending officers –Credit risk analysis of banks, manufacturing, retail and distribution companies –Case studies of actual regional companies SME Credit Risk Analysis –Same target as above –SME analysis & rating framework 16

3. Training Investment Management Fundamentals –Basics of professional investment management –Designing and implementing an investment policy statement for managing the credit union’s funds Determining risk and required return Asset allocation targets and strategies 17

Other value-added services 4. Bond Valuation Service –Independent pricing of corporate bonds in portfolio for mark-to-market purposes –Comprehensive report with yield curves and explanation of changes –Stress testing of portfolios 5. Risk Software Solutions –Retail scorecards built –Credit Risk Assessment Model for larger corporates 18

In Closing Credit unions in the region are faced with a new era of increased regulations and more stringent compliance requirements CariCRIS, a regional institution, is here to partner with the Movement, to help credit unions prepare for this new era, and continue to grow and achieve financial soundness. 19

THANK YOU Caribbean Information & Credit Rating Services Limited Contact: Wayne Dass (mobile) (office)