... reflect the extremely high probability of support the bank may receive from the UAE authorities, if needed. Fitch Ratings' view of the bank's support is based on Mashreq's systemic importance and the UAE's strong track record of support. The Viability Rating (VR) reflects Mashreq's weak asset quality, considerable concentrations on both sides of the balance sheet, some corporate governance concerns related to board composition and moderate capitalisation. The rating also considers the resilient franchise, solid pre-impairment and net profit and comfortable liquidity position. High Problem Loan Ratio: Asset quality is a key rating constraint. Mashreq reported a moderate 6% impaired loans/gross loans ratio at end-2013. However, when adding restructured loans and 90 days past due but not impaired loans, the problem loan ratio was significantly higher. The total problem loan ratio has, however, been improving since 2013 with some repayments...
