...Support Drives Ratings: Barwa Bank's Issuer Default Ratings (IDRs) are driven by an extremely high probability of support from the Qatari authorities, if needed. This reflects Qatar's strong ability to support its banks, as indicated by its rating, combined with Fitch Ratings' belief that there would be a strong willingness to do so. Barwa's Viability Rating (VR) reflects its limited franchise, high balance-sheet concentration and weaker liquidity. It also takes into account the bank's sound asset quality, sufficient capital and good profitability. Limited Franchise: Barwa has a market share in Qatar of only 3%. Nevertheless, the bank benefits from its strong ties to the Qatari government (as a result of the 54% ownership stake held by various government entities), which help generate business flows in both financing and funding. Tighter Liquidity: Barwa's gross financing-to-deposits ratio increased to 117% at end-3Q17 from 101% at end-2016 due to a decrease in deposits, which was partially...
