...Arab Bank Plc's (AB) Issuer Default Ratings (IDRs) are driven by its standalone strength, as indicated by its 'bb' Viability Rating (VR). The VR reflects the bank's geographical diversification, leading domestic franchise, stable asset quality, adequate profitability and capitalisation, and stable funding and liquidity. It also considers AB's high exposure to the Jordanian sovereign (end-1H26: 1.5x common equity Tier 1 - CET1 - capital), and challenging operating conditions in some Middle East and North African (MENA) countries. AB's Long-Term IDR is one notch above Jordan's 'BB-' sovereign rating. Fitch Ratings also believes that the Jordanian government would not prevent AB from servicing its debt obligations in a sovereign default by imposing capital controls. However, Fitch caps AB's VR at one notch above Jordan's IDR because of the bank's high exposure to the sovereign relative to its CET1 capital (lending, holding of government securities and placements at the Central Bank of Jordan...
