... Islamic Bank's (JIB) Issuer Default Ratings (IDRs) are driven by its standalone strength, as defined by its Viability Rating (VR). The Negative Outlook reflects Fitch's assessment that the coronavirus pandemic will add pressure to the bank's financial profile as well as to the domestic operating environment. The latter was already characterised by below-potential GDP growth, elevated unemployment and a difficult regional environment that constrains the country's growth potential. High Exposure to Sovereign: JIB's largest financing is to National Electric Power Company (NEPCO) against a 100% government guarantee. It equalled 1.9x JIB's common equity Tier 1 (CET1) capital at end-3Q19 and elevates single-name concentration. This underpins the strong correlation between the ratings of JIB and the sovereign, both of which are on Negative Outlook. The remaining top 20 single exposures equalled 0.6x JIB's CET1 capital at end-3Q19. Strong Domestic...
