...IDR State-Support Driven: Bank of Sharjah's (BOS) IDRs, Support Rating (SR) and Support Rating Floor (SRF) are driven by a high probability of support from the UAE and Sharjah authorities, if needed. This reflects the strong history of support in the UAE. Viability Rating Drivers: The Viability Rating (VR) is constrained by the bank's relatively small franchise and some asset quality concerns. It reflects BOS's high concentration risk, some related-party lending concerns and modest profitability. It also takes into account BOS's adequate capital ratios, adequate loan loss reserve coverage of existing problem exposures and a healthy liquidity position. Moderate Asset Quality Improvement: The impaired loans ratio decreased to 5% at end- 1H15 from 7.3% at end-2014 partly due to 1% of loans being written off, but also thanks to the recovery of some impaired exposures. Total problem loans (impaired, 90 days overdue, but not impaired and restructured loans) comprised a moderate 8.6% of gross...
