...High Probability of State Support: Bank of Sharjah PJSC's (BOS) Issuer Default Ratings (IDRs) are driven by a high probability of support from the UAE authorities if needed. This reflects the UAE's strong capacity to support the banking system and its long record of supporting domestic banks. It also factors in Fitch Ratings' view of BOS' lower relative systemic importance due to its smaller market share and franchise. BOS' Viability Rating (VR) reflects a high problem loans ratio (which includes impaired, restructured and 90 days past due but not impaired loans), sizeable concentrations on both sides of the balance sheet and variable profitability. It also considers adequate reserve coverage, strong capital ratios, management's depth, stability and experience, and healthy liquidity. Small Franchise: BOS is a niche corporate bank with a UAE focus, combined with a presence in Lebanon. The bank accounted for about 1.0% and 1.3% of total UAE banking system loans and deposits, respectively,...
