CariCRIS reaffirms “good creditworthiness” ratings of National Commercial Bank Jamaica Limited

• On January 21, 2025, Caribbean Information and Credit Rating Services Limited (CariCRIS) reaffirmed the Issuer/Corporate Credit Ratings assigned to National Commercial Bank Jamaica Limited (NCBJ or the Bank) at CariA and CariA+ (Foreign and Local Currency Rating) on the regional rating scale, and jmAA+ (Local Currency Rating) on the Jamaica national scale.
• The regional ratings indicate that the level of creditworthiness of NCBJ, relative to other peers in the Caribbean, is ‘good’. However, the national scale rating indicates that the level of creditworthiness of NCBJ relative to other peers in Jamaica, is ‘high’.
• CariCRIS also maintained a stable outlook on the ratings for NCBJ. The stable outlook reflects the high probability of a turnaround in profitability over the next 12-15 months due to the three consecutive declines in interest rates in Jamaica in the 2nd half of 2024, with further rate cuts anticipated.
• This is likely to result in a reduction in the cost of funds, thus positively impacting net interest income, as well as the booking of trading gains. Profitability is, however, expected to be tempered by an increase in expenses as NCBJ continues to implement strategic projects.
• That said, the Bank and its subsidiaries are expected to remain well-capitalised with good asset quality and NCBJ is expected to comfortably meet its financial obligations over the next 12 to 15 months.

(Source: CariCRIS)