...Operating Environment Constrains Ratings: Bank of Jordan's (BOJ) Issuer Default Ratings (IDRs) are driven by its intrinsic strength as indicated by its Viability Rating (VR), which is correlated with, and constrained by, the Jordanian operating environment given BOJ's largely domestic focus. Solid Domestic Franchise: BOJ has a solid domestic franchise, especially in the corporate segment, and accounted for about 5% of total banking system loans and deposits at end-2017. Healthy Asset-Quality Metrics: Asset-quality risks are driven by the bank's concentrated exposure to the Jordanian government or government-guaranteed entities. However, asset- quality metrics remain healthy with the impaired loans ratio maintained at 5% at end-2017, supported by high loan growth. Reserve coverage of impaired loans improved to 122% at end- 2017 from 109% at end-2016 as the bank booked additional loan impairment charges (LICs) to boost its loan-loss reserve coverage. Conservative Risk Appetite: Fitch Ratings...
