...IDRs Driven by Sovereign Support: BMCE Bank's Issuer Default Ratings (IDRs) reflect Fitch Ratings' view that the Moroccan authorities would have a high propensity to support the bank if needed, in light of BMCE's systemic importance to Morocco (about 14% market share at end- 2015). However, Fitch views the probability of support as only moderate considering Morocco's financial strength (BBB-/Stable). The Stable Outlook on BMCE's Long-Term IDRs reflects that on the Moroccan sovereign rating. BMCE's Viability Rating (VR) is constrained by the combination of modest capital ratios and a high risk appetite, as shown by its significant exposures towards sub-Saharan Africa. The VR also factors in BMCE's solid domestic franchise, vulnerable asset quality, overall solid funding and liquidity profile, and sound profitability. High Risk Appetite: BMCE's risk appetite is higher than Moroccan peers', as reflected by its substantial activities in sub-Saharan African (24% of its loans book at end-2015)...
