Standard&Poor's Ratings Services' ratings on National Commercial Bank Jamaica Ltd. (NCB) are constrained by the sovereign ratings on Jamaica because sovereign bonds and loans to public entities represent most of NCB's assets. The ratings are also constrained because NCB's client concentration is larger than that of peers, and the company is operating in a relatively small, highly indebted, and nondiversified economy. The bank's relevant market presence in the Jamaican banking system and consistent improvements in its operating performance support the ratings. NCB maintains a large exposure to Jamaica's government, represented by its investment in government bonds. In addition, an important portion of the loan portfolio is concentrated in public-sector companies in which the government is the ultimate payer.
