Group managing director of NCB, Patrick Hylton. - File

Standard & Poor's has affirmed its 'B/B' counterparty credit rating for National Commercial Bank Jamaica Limited (NCB), saying its stable outlook on the bank reflects operational improvements in a 'challenging environment'.

The international ratings agency also said that its call on NCB mirrored Jamaica's, having looked at the composition of its balance sheet.

"The ratings on NCB are constrained by the sovereign ratings on Jamaica because sovereign bonds and loans to public entities represent most of NCB's assets," S&P said.

"The ratings are supported by the bank's relevant market presence in the Jamaican banking system, adequate performance in a challenging environment, and consistent improvements in its operating performance."

Its assessment follows another record breaking year for net profits for NCB under managing director Patrick Hylton.

The bank made $6.6 billion. But while its assets, which rose to $225 billion at yearend October 2007, are the largest of any of the six commercial banks - including loan leader Bank of Nova Scotia Jamaica Limited - a significant portion, $141 billion, is held in the form of investment securities. Its loan portfolio is just over a third of that at $56 billion.

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