...State Support Drives IDRs: Dubai Islamic Bank PJSC's (DIB) Issuer Default Ratings (IDRs) are driven by an extremely high probability of support from the UAE authorities, if needed. This reflects the strong history of support in the UAE and DIB's domestic systemically important bank (D-SIB) status in the UAE and Dubai in particular. DIB's Viability Rating (VR) reflects its improved asset-quality and capital metrics, tightened underwriting standards, strong domestic franchise, healthy profitability, as well as sound liquidity and funding, with a large and stable deposit base. It also factors in the bank's sizeable financing book concentration and high, but declining, exposure to real estate Improved Asset Quality: DIB's impaired financing ratio dropped to 3.7% at end-2016 from 10.4% at end-2012 owing to write-offs, recoveries, some classifications back to performing and financing growth. The bank's problem financing ratio (impaired financing plus restructured financing plus 90 days past due...
