Fitch revises Bank of Jamaica view to positive

Fitch Ratings said it affirmed National Commercial Bank of Jamaica Ltd.’s long-term foreign- and local-currency issuer default ratings at B+ and revised the outlook to positive from stable.

The positive outlook on the bank’s IDRs reflects the recent revision of the sovereign outlook to positive. Fitch said it believes expected improvements in the operating environment could benefit the bank’s financial profile.

The bank’s capital ratio of tangible common equity to tangible assets improved in 2019 to 16.09% from 14.69% in 2018 from improvements in capital reserves as well as retained earnings. The bank’s regulatory ratio stabilized at 12.88% at fiscal 2019 close to the regulatory requirement of 12.50%; however, the company has been able to make regular transfers from its retained earnings account (not considered within the regulatory capital) in order to sustain the metric above the minimum, which is expected to continue.

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