...Jordan Islamic Bank's (JIB) Issuer Default Ratings (IDRs) are driven by its standalone strength, as indicated by its 'bb-' Viability Rating (VR). The VR takes into consideration its only adequate capitalisation, given the bank's high leverage and sovereign exposure. It also reflects JIB's strong domestic franchise, stable asset quality, profitability, and funding and liquidity. Challenging Domestic Operating Environment: High government debt, large external financing needs and geopolitical risks constrain GDP growth. The Iran war has increased energy import costs, and affected tourism, investments, capex and exports. Fitch Ratings expects real GDP growth of 2.3% in 2026, supported by macroeconomic stability, a resilient banking sector and backing from international partners. Bank credit growth is likely to remain moderate (2026F: 3%-4%) due to limited financing opportunities and stiff bank competition. Strong Domestic Franchise: JIB had a market share of 10.4% of banking-sector assets and...
