...Support Drives Ratings: BMCE Bank S.A.'s ratings are driven by a moderate probability of support from the Moroccan sovereign (BBB-/Stable). The Stable Outlook on the Long-Term Issuer Default Rating (IDR) reflects the Outlook on the sovereign rating. Fitch Ratings believes the authorities would have a high propensity to support BMCE, which controls around 15% of domestic deposits. We regard BMCE as a domestically systemically important bank (D-SIB). Weak Operating Environment: The operating environment for BMCE is weaker than the operating environment for banks operating exclusively in Morocco. This is because 32% of consolidated assets and 43% of net income in 1H18 relate to business and risk exposures in countries less developed than its home market. The operating environment score is a constraining factor for the Viability Rating (VR). Improved Risk Profile: The bank embarked on a deleveraging plan in 2017 to preserve capital, following years of above-average loan expansion. Further expansion...
