...Operating Environment Constrains IDRs: Jordan Islamic Bank's (JIB) Issuer Default Ratings (IDRs) are driven by its intrinsic strength as indicated by its Viability Rating, which is correlated with, and constrained by, the Jordanian operating environment given JIB's domestic focus. The Negative Outlook reflects the difficult operating environment in Jordan. Strong Domestic Franchise: JIB is the largest Islamic bank in Jordan and the third-largest domestic bank after Arab Bank Plc and Housing Bank. It accounted for 8.5% and 11.6% of total banking system assets and financing facilities, respectively, at end-2016. Solid Funding Base: JIB's non-equity funding consists almost entirely of customer deposits. Retail deposits form about 90% of the deposit base given the bank's strong domestic franchise. Deposit concentration is very low, with the 20 largest deposits accounting for less than 5% of total deposits. Adequate Liquidity: JIB maintains an adequately liquid balance sheet, with a financing/deposits...
