...Stable Rating Outlooks: The ratings Fitch assigns to major Moroccan banks are support driven, with potential support, if required, coming either from the state or international parent banks. Our rating drivers have not changed and the Outlooks for the banks' ratings remain Stable, mirroring the Outlooks on both sovereign and parent bank ratings. Stable Sector Outlook: The structural strengths and weaknesses of Morocco's banking sector are unlikely to change much in 2017. We forecast stronger economic growth in 2017, which should stimulate credit demand but high loan impairment charges ¡ which neared 40% of 1H16 pre-impairment operating profits reported by large banks ¡ will depress profitability, making it more difficult to boost capital through earnings retention. Funding stability is a strength. Retail Lending Drives Growth: Retail mortgages (+5.5% in the six months to end-June 2016) and consumer loans (+5%) are the main drivers of recent sector loan growth (+2.6%). We expect this to...
