...High Probability of State Support: National Bank of Ras Al-Khaimah's (Rakbank) Issuer Default Ratings (IDRs) are driven by a high probability of support from the UAE authorities, if needed. This reflects the UAE's strong capacity to support the banking system and the long record of supporting domestic banks. However, it also factors in Fitch's view of Rakbank's lower relative systemic importance due to its smaller market share and franchise. Rakbank's Viability Rating (VR) is constrained by the bank's fairly small franchise and niche business model relative to other UAE banks. It also reflects the bank's healthy capital ratios and adequate funding and liquidity, supported by a stable customer deposit base. Rakbank has strong profitability compared with peers, reflecting its high-margin business model. Small Franchise: Rakbank is a niche retail and small-business bank with a focus on domestic operations. The bank accounted for 1.9% and 1.8% of total UAE banking system loans and deposits,...
