Credit rating agency Fitch has placed the NCB Financial Group (NCBFG) and the National Commercial Bank Jamaica (NCBJ) on a Rating Watch Negative, which means that it could downgrade the credit rating in the next few months due to the negative impact of Hurricane Melissa on the economy.
This is because devastation caused by Melissa will lead to an increase in insurance payouts by its general insurance subsidiary Guardian Holdings and an increase in the bank's non-performing loans, which now stand at just under 5%.
The NCB Financial Group's long-term debt is rated B+, while the National Commercial Bank is rated BB-. This is although the Group generated consolidated net profits of $36 billion during the year, which ended September 13.
The Fitch rating comes although the consolidated net profits rating represented an increase of 71% when compared with last year.
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