...Stable Rating Outlook: The rating outlook for the largest Moroccan banks is stable. This is driven by Fitch Ratings' expectations that Moroccan banks would be supported, if needed, by the Moroccan state or their majority shareholders, whose own ratings are on Stable Outlook. Stable Sector Outlook: The stable sector outlook for the largest Moroccan banks balances resilient profitability against modest capital ratios given substantial risk appetite in volatile African operating markets and modest asset quality. Non-Agricultural Domestic Growth To Drive Profitability: Fitch expects higher non- agricultural GDP growth in 2016, which should translate into higher revenues and help stabilise loan impairment charges (LICs) for the banking sector. This will, however, largely depend on EU growth prospects and the resilience of the Moroccan tourism sector. Asset Quality Under Pressure: The five major Moroccan banks' asset quality is modest by international standards. Asset quality will remain largely...
