Standard&Poor's Ratings Services' ratings on National Commercial Bank Jamaica Ltd. (NCB) are constrained by the sovereign ratings on Jamaica (B-/Stable/C) because of the bank's high exposure to securities of, and loans to, the government and public entities. The challenging economic conditions in the country also constrain the bank's creditworthiness. However, NCB's strong market position and adequate financial profile support the ratings. NCB maintains a large exposure to Jamaica's government in the form of securities and loans. As a consequence of Jamaica's April 2010 sovereign debt exchange, the lower interest rate paid on these securities has been pressuring NCB's interest margins, affecting profitability. However, considering the bank's efforts to improve other revenue sources and its cost containment policy, we
