...High Probability of State Support: Mashreqbank PSC's Issuer Default Ratings (IDRs) are driven by an extremely high probability of support from the UAE authorities, if needed. This reflects the strong history of support in the UAE as well as Mashreq's status as a domestic systemically important bank (D-SIB) in the UAE and Dubai in particular. The Viability Rating (VR) reflects Mashreq's improved asset quality, reduced risk appetite, lower single-borrower concentration than peers, strong franchise and profitability, solid capitalisation and comfortable liquidity. It also considers its sizeable deposit concentration. Improved Asset Quality: Mashreq's impaired loans ratio declined to 3.9% at end-1H17 from 12.6% at end-2011. Over the same period, the bank's problem loans ratio (which includes impaired loans + restructured loans + 90 days past due but not impaired loans) fell to about 10% from 28.4%. Impaired loans were 1.4x covered by loan-loss reserves at end-1H17, while coverage of problem...
