Standard&Poor's Ratings Services' ratings on National Commercial Bank Jamaica Ltd. (NCB) are constrained by the sovereign rating on Jamaica (B-/Stable/C) due to the bank's high exposure to securities and loans with the government and public entities. NCB's high loan concentration, the slow pace of the country's economic recovery, soft domestic demand, and rising unemployment could put pressure on asset quality and the group's financial performance, in our view. However, despite the difficult operating environment, the bank has shown adequate financial performance. NCB maintains a large exposure to Jamaica's government in the form of securities, loans, and guarantees (54% of total assets at year ended Sept. 30, 2010). As a consequence of Jamaica's debt exchange (JDX), the interest rate
