S&P Global Ratings has revised its outlook for NCB Financial Group (NCBFG) and its primary banking subsidiary, National Commercial Bank Jamaica (NCBJ), from ‘stable’ to ‘positive’. This adjustment indicates a heightened likelihood of credit rating upgrades for both entities within the next one to two years. While S&P has maintained the current ratings of ‘BB-‘ for NCBJ and ‘B-‘ for NCBFG, the shift in outlook is closely tied to Jamaica’s improved national credit rating, which was upgraded last month. The agency commended the Jamaican government for its disciplined fiscal management and debt reduction efforts, which have strengthened the country’s financial stability and its ability to support the banking sector. Additionally, S&P highlighted the resilience of Jamaica’s economy, driven by robust tourism revenues and remittances, which have bolstered foreign reserves and stabilized the Jamaican dollar. The economy is projected to grow by 2% this year, fostering a more stable environment for banks. NCBJ, Jamaica’s largest bank, was praised for its diverse service offerings, while NCBFG was recognized for its diversified business portfolio, including its ownership of a major insurance company. However, S&P cautioned that NCBJ’s non-performing loans, though manageable, remain elevated compared to pre-pandemic levels, and NCBFG’s Bermuda subsidiary carries higher-risk loans tied to tourism and construction. The agency also noted that any stagnation in Jamaica’s economic progress could revert the outlook to ‘stable’.