...Bank al Etihad's (BAE) Issuer Default Ratings (IDRs) are driven by its standalone strength, as indicated by Fitch Ratings' 'bb-' Viability Rating (VR). The VR considers BAE's high exposure to the domestic operating environment and Jordanian sovereign, high single-obligor concentration, pressure on loan quality, including loans acquired from recent acquisitions, and tight profitability and capitalisation. It also considers the bank's strong domestic franchise and stable funding and liquidity. Challenging Domestic Operating Environment: High government debt, large external financing needs and geopolitical risks constrain GDP growth. The Iran war has increased energy import costs and affected tourism, investments, capex and exports. Fitch Ratings expects real GDP growth of 2.3% in 2026, supported by macroeconomic stability, a resilient banking sector and backing from international partners. Bank credit growth is likely to remain moderate (2026F: 3%-4%) due to limited financing opportunities...
