...Institutional Support Drives Ratings: Ahli United Bank BSC's (AUB) Issuer Default Ratings (IDRs) reflect a high probability of institutional support from its core shareholder, Kuwait's Public Institution for Social Security (PIFSS), an arm of the State of Kuwait, which has an 18.6% stake. PIFSS also holds 13.3% in AUB's Kuwaiti subsidiary ¡ its largest subsidiary, which accounts for 36% of AUB consolidated assets. The probability of support from PIFSS is, however, constrained by Bahrain's Country Ceiling. Sovereign Rating Constrains VR: AUB's VR is not capped by Bahrain's sovereign rating, but it is constrained by it. Its VR is two notches higher than the sovereign rating given the bank's strong geographical diversification, solid and recurring performance, conservative risk appetite and sound asset quality. The VR also considers loan book concentrations, lower capital ratios than domestic and regional peers, and exposure to some higher-risk Middle East and North Africa (MENA) markets,...
