...Support Drives IDRs: Ahli Bank Q.S.C's (ABQ) Issuer Default Ratings (IDRs) are driven by an extremely high probability of support from the Qatari authorities, if needed. This reflects Qatar's strong ability to support its banks and reflects Fitch Ratings' view that there would be a strong willingness to do so. The Viability Rating (VR) of ABQ reflects the bank's well-balanced business model despite a small domestic franchise, adequate profitability, sound asset-quality metrics, satisfactory capital ratios and sufficient liquid assets. It also factors in high balance-sheet concentrations and a lack of domestic deposit funding. Small Domestic Franchise: ABQ has a well-balanced business model but its domestic franchise remains small (3% of banking system loans and deposits). Adequate Profitability: Profitability is in line with domestic peers', with an operating return on average risk-weighted assets (RWAs) of 2.3% in 1Q18. ABQ's cost of funding has come under pressure as the bank increased...
