...Bank of Jordan Plc's (BOJ) Issuer Default Ratings (IDRS) are driven by its standalone strength, as indicated by its 'bb-' Viability Rating (VR). The VR reflects the bank's moderate franchise and exposure to the Palestinian territories, which weigh on asset quality and result in weaker loan quality than that of domestic peers. This is counterbalanced by healthy profitability despite recent pressure, high capital ratios, and stable funding and liquidity. Challenging Domestic Operating Environment: High government debt, large external financing needs and geopolitical risks constrain GDP growth. The US¡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 and stiff competition. Moderate Domestic...
