...State Support Drives IDRs: Commercial Bank International P.S.C.'s (CBI) Issuer Default Ratings (IDRs) reflect a high probability of support from the UAE authorities, if needed. This takes into consideration the UAE's strong ability and long history of supporting the banking system, but also CBI's moderate systemic importance based on its 0.5% share of banking system assets. CBI's Viability Rating (VR) reflects the bank's small franchise, weakened and volatile asset quality which could come under further pressure due to high concentrations and high potential problem loans (Stage 2 and Stage 3), weak capitalisation considering elevated capital encumbrance by unreserved problem loans, and weakened profitability metrics. It also considers adequate liquidity and ordinary liquidity support from the bank's largest shareholder Qatar National Bank (Q.P.S.C.) A+/RWN; 40% stake). Limited Franchise: CBI's 0.5% share of banking system assets at end-1H21 highlights the bank's small franchise. The business...
