The ratings on National Commercial Bank Jamaica Ltd. (NCB) are constrained by the sovereign ratings on Jamaica, as sovereign bonds and loans to public entities represent most of NCB's assets. The ratings are also constrained by NCB's larger-than-peer loan concentration in its main clients, and its operating in a relatively small, highly indebted, and nondiversified economy. The ratings are supported by the bank's relevant market presence in the Jamaican banking system and consistent improvements in its operating performance. NCB maintains a large exposure to Jamaica's government, represented by investments in government bonds. In addition, an important portion of the loan portfolio is concentrated in Jamaican public-sector companies in which the government is the ultimate payer. Concentration in NCB's loan portfolio
