...Sovereign Support Drives Ratings: Bank Aljazira's (BAJ) Issuer Default Ratings (IDRs) reflect a high probability of support from the Saudi Arabian authorities. Fitch Ratings' assessment of support takes into account the authorities' long record of support for Saudi banks, their continued willingness to maintain stability in the domestic financial system and a strong ability to support banks. It also considers BAJ's limited systemic importance. BAJ's Viability Rating (VR) is constrained by the bank's limited company profile, but also considers its vulnerable asset quality and a weaker funding profile than larger peers. The VR further reflects improving financial metrics, in particular capitalisation and liquidity. Limited Franchise: BAJ is one of the Kingdom's smallest banks with a weaker funding profile compared with peers. It has had limited success in diversifying its business model, illustrated by core (retail and corporate) banking activities generating less than half of BAJ's net income....
