...AlRayan Bank (Q.P.S.C.)'s Issuer Default Ratings (IDRs) reflect potential support from Qatar, as reflected in the Government Support Rating (GSR) of `a'. The Negative Outlook reflects that on the Qatari sovereign rating (AA/Negative). AlRayan's Viability Rating (VR) reflects its high exposure to Qatar's operating environment, very high regulatory capital ratios, a strong business profile underpinned by its domestic Islamic banking franchise, and a healthy funding mix and liquidity. This is balanced by the bank's high problem financing, low provision coverage and weaker profitability than domestic peers, undermined by lower margins and high financing-impairment charges. GSR of `a': The Qatari authorities have a strong propensity to support domestic banks, irrespective of the banks' size or ownership. They also have a strong ability to do so, as indicated by the sovereign rating and substantial net foreign assets and revenue, although this is weakened by the Qatari banking sector's large...
