Fitch Ratings affirmed the long-term Issuer Default Rating (IDR) of Arab Bank at 'BB', and the long-term IDRs of Jordan Islamic Bank (JIB) and Bank of Jordan (BOJ) at 'BB-', with a 'stable' outlook. Also, the agency affirmed the Viability Rating (VR) of Arab Bank at 'bb' and the VRs of JIB and BOJ at 'bb-'. It indicated that the banks' IDRs are driven by their standalone credit profiles. It added that the ratings of JIB and BOJ are constrained by Jordan's challenging operating environment. However, it pointed out that Arab Bank's IDR is constrained but is not capped by Jordan's sovereign risks, given that its operations outside the MENA region would help offset the impact of a potential sovereign crisis. Further, it considered that JIB's and BOJ's VRs reflect their solid domestic franchises, sound asset quality and adequate capital buffers. It added that Arab Bank's VR is mainly supported by the bank's geographic diversification, sound asset quality and solid capital ratios. In parallel, Capital Intelligence Ratings affirmed at 'BB-' the long-term foreign currency ratings (FCRs) of Jordan Kuwait Bank (JKB), Arab Jordan Investment Bank (AJIB) and Investbank (IB), with a 'negative' outlook. It noted that the banks' FCRs are constrained by Jordan's sovereign ratings, given their high exposure to the sovereign and to the Jordanian market. Further, it affirmed at 'BBB' the Financial Strength Rating (FSR) of JKB and AJIB, and at 'BB+' that of IB. It noted that the FSR of JKB is supported by the bank's sound capitalization and adequate operating profitability, but is constrained by weakening asset quality. It added that AJIB's FSR reflects the bank's good asset quality, sufficient liquidity and sound capital adequacy ratio.
Source: Fitch Ratings, Capital Intelligence Ratings