Credit ratings agency Fitch Ratings has removed the negative ratings watch placed on National Commercial Bank Jamaica, despite expectations of slower economic activity and rising loan risks.
Fitch says it still expects reconstruction costs to increase and the bank's level of non-performing loans to grow, but the agency believes the bank's strong position in Jamaica's banking sector supports its current rating.
According to Fitch, NCB controls about 35 per cent of the $2.8 trillion in assets held by commercial banks and 31 per cent of the sector's two trillion dollars in deposits as at the end of December last year.
Because of this dominant market share, Fitch says the bank continues to hold a BB- credit rating, although that rating remains below investment grade.
Meanwhile, Fitch says the B+ rating for NCB Financial Group, the parent company of NCB, also remains below investment grade.
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