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 by the bank's large exposure to Jamaica's government; larger-than-peers-average loan concentration; a relatively small operating environment with high indebtedness in a nondiversified economy; and a challenging environment for the Jamaican banking system. The bank's relevant market presence in the Jamaican banking system, adequate but pressured performance in a more challenging environment, and consistent improvements in its operating performance support the ratings. NCB maintains a large exposure to Jamaica's government in the form of investments in government bonds. In addition, an important
