All posts by sinistra

smi, BSc International Relations, journalist, wordspinner, Trinidadian, Londoner, New Yorker, limer, music-obsessed, drastic sarcastic, Soca Warrior, work in progress.
Words

On nomadism

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I wrote this, elsewhere, three months ago:

I am a stranger. I am estranged. I am a person without a country, without people, without kin.

I rely more often on the kindness of strangers than the loyalty of friends. I watch those I love and loved and lost create lives in which I play no part. I am apart.

This, I think, describes the primary challenge of a Caribbean expat (exile?), genus young, gifted and alone.

It is the very definition of an existential crisis.

The last time I went to Tobago, and upon checking in to Toucan Inn & Bonkers, I proffered a Trinidadian drivers’ license [accepted nowhere in Manhattan as a form of ID], a UK credit card and a US address.

My tax lawyers disagree as to my country of residence, a question I dither over every time I am confronted with the question on immigration forms.

Trying to renew my passport, I am stymied because I don’t know anyone here who fits the criteria for a “recommender” [sic]: has known me for three years, is not a close relative, is an “accomplished professional.”

Need to renew my US visa – easier to do that in the UK than in Trinidad, where I will be asked to demonstrate my “strong ties” to the country [the better to prove I am not a potential illegal immigrant]. Which I can’t prove I have – no Trinidadian bank account, no property in my name, job based overseas.

So it go.


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Business & Finance, Trinidad & Tobago

S&P says may cut ratings on FCB and Republic Bank

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S&P, which said today it was considering downgrading T&T’s sovereign credit rating, is also scrutinising the ratings of both First Citizens Bank and Republic Bank due to the fallout from the CL Financial bailout.

Here are the statements, any emphasis/explanations mine:

S&P: First Citizens Bank Ltd. ‘BBB+/A-2’ Rating Put On CreditWatch Negative

[“CreditWatch Negative” means that a downgrade is likely within the next three months, pending further information/review]

[A triple-B rating is borderline investment grade; the institution is considered ‘satisfactory’]

MEXICO CITY Feb. 3, 2009–Standard & Poor’s Ratings Services said today that it placed its ‘BBB+/A-2’ counterparty credit rating on First Citizens Bank Ltd. on CreditWatch with negative implications.

Standard & Poor’s also said that it placed its ‘BBB+’ ratings on the $100 million bonds from First Citizens and First Citizens (St. Lucia) Ltd. on Credit Watch negative.

The CreditWatch placement follows Trinidad and Tobago’s announcement on Jan. 30, 2009, that it will assume control of or provide support to several key subsidiaries of CL Financial Group (CLFG), a large Trinidadian financial conglomerate. According to the central bank, CLFG’s financial condition has deteriorated because of related-party transactions, high-risk investments, and high leveraging of the group’s assets. The central bank has announced that it will take control of CLFG’s flagship bank, Clico Investment Bank (CIB), transfer its assets and deposits liabilities to First Citizens Bank (wholly owned by the government), and revoke CIB’s banking license. The government has announced that CLFG will divest assets, including its shares in Republic Bank Ltd. (a 55% share) and Methanol Holdings Trinidad Ltd., to First Citizens Bank and the government to make up the statutory fund shortfall, with the government backstopping any deficiency.

“We expect to resolve the CreditWatch status of the ratings when there is further clarification of First Citizens Bank participation in the bail out process and the impact that this will have on the bank’s overall creditworthiness,” said Standard & Poor’s credit analyst Angelica Bala.

S&P: Republic Bank Ltd. ‘BBB/A-2’ Rating Put On CreditWatch Developing

MEXICO CITY Feb. 3, 2009–Standard & Poor’s Ratings Services said today that it placed its ‘BBB/A-2’ counterparty credit rating on Republic Bank Ltd. on CreditWatch with developing implications.

The CreditWatch placement follows Trinidad and Tobago’s announcement on Jan. 30, 2009, that it will assume control of or provide support to several key subsidiaries of the CL Financial Group (CLFG), a large Trinidadian financial conglomerate that owns 55% of Republic Bank Shares. The government has announced that CLFG will divest assets, including its 55% share in Republic Bank Ltd., to First Citizens Bank and the government to make up the statutory fund shortfall, with the government backstopping any deficiency.

“We expect to resolve the CreditWatch status of the ratings when there is further information on how the transaction is going to be done and the implications to Republic Bank, currently the largest bank in the country,” noted Standard & Poor’s credit analyst Angelica Bala.


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Business & Finance

CL Financial bailout threatens T&T’s credit rating

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From credit rating agency Standard & Poor’s on Tuesday (emphasis and in-line explanations mine):

NEW YORK, Feb. 3, 2009–Standard & Poor’s Ratings Services said today that it placed its ‘A/A-1’ foreign-currency and ‘A+/A-1’ local-currency sovereign credit ratings on the Republic of Trinidad and Tobago on CreditWatch with negative implications.

[Credit watch with negative implications means the ratings agency is considering downgrading T&T’s existing credit rating; any subsequent rating action is normally taken within three months. A sovereign’s credit rating is important because it determines (among other things) how much that country will pay to borrow in the international debt markets. Essentially, a credit rating is an assessment of a country’s creditworthiness; it is an indicator of that country’s willingness and ability to repay its debts. As a benchmark, S&P rates the United States as triple-A – the highest possible rating – while Jamaica is currently rated B]

“The CreditWatch placement follows the government’s announcement on Jan. 30, 2009, that it will assume control of or provide support to several key subsidiaries of the CL Financial Group (CLFG), a large Trinidadian financial conglomerate,” explained Standard & Poor’s credit analyst Roberto Sifon-Arevalo. According to the central bank, CLFG’s financial condition has deteriorated because of related-party transactions, high-risk investments, and high leveraging of the group’s assets. The central bank has announced that it will take control of CLFG’s flagship bank, Clico Investment Bank (CIB), transfer its assets and deposits liabilities to wholly government-owned First Citizens Bank, and revoke CIB’s banking license. CLFG has also disclosed that its insurance companies–CLICO Insurance Co. Ltd. and British American Insurance Co. Ltd.–have sizeable statutory fund deficits. The government has announced that CLFG will divest assets, including its 55% share in Republic Bank Ltd. and share in Methanol Holdings Trinidad Ltd., to First Citizens Bank and the government to make up the statutory fund shortfall, with the government backstopping any deficiency.

“We will resolve the CreditWatch status of the ratings once we can estimate the potential fiscal cost to the government, the broader damage to its financial system, and any impairment to the island’s medium-term growth prospects,” Mr. Sifon-Arevalo added. Trinidad and Tobago enters this CLFG intervention with general government assets exceeding debt by 4.5% of GDP in 2008, a substantial improvement from a net debt position of 20% in 2003. The country’s external position has also strengthened, with net external liabilities of 6% of current account receipts in 2008, down from 134% in 2003. The government’s saving of part of its gas windfall in its Heritage and Stabilization Fund during this period accounts for its fiscal buffer and the country’s improved international investment position.

Further reading:
Sovereign ratings in the Caribbean – An S&P report from May 2007


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