...State Support Extremely Likely: Al Hilal Bank PJSC's (AHB) Issuer Default Ratings (IDRs) are driven by an extremely high probability of support from the UAE and Abu Dhabi authorities if needed. This reflects a long history of support in the UAE as well as the bank's full ownership by the Abu Dhabi government, which offsets its lower systemic importance in the UAE. VR Reflects Weak Financial Condition: AHB's Viability Rating (VR) reflects its weak asset quality, profitability and capital ratios, which render the bank's repositioning and growth strategy difficult to implement by the recently appointed management team. It also reflects AHB's high single-name concentrations and small domestic franchise. The VR also factors in the bank's adequate funding and liquidity and to some extent, its links to the Abu Dhabi government for potential business origination through its ownership. Weak Asset Quality: AHB's asset quality has deteriorated sharply since 2015 with the impairment of two of its largest...
