...Ratings Linked but Not Capped by Sovereign: Arab Bank Plc's (Arab Bank) ratings are linked to but not capped by Fitch Rating's view of the Jordanian sovereign. The ratings reflect the bank's geographical diversification, solid capital ratios, conservative overall risk appetite, healthy pre-impairment operating profitability and stable funding profile. The structure of its netw ork and affiliates, and its large stock of liquid assets (mainly in Europe) that could be used to repay the bank's creditors, help mitigate risks to its credit profile associated w ith its domicile. Increased Exposure to the Sovereign: Arab Bank's loan book in Jordan grew by 23% in 2017, w ell above the sector average of 8%. This increased exposure to the Jordanian economic environment adds to an already high exposure to the Jordanian sovereign relative to the bank's equity via holdings of government securities . This, to some extent, offsets the benefits of Arab Bank's geographical diversification. Stable Funding...
