...State Support Extremely Likely: Noor Bank's Issuer Default Ratings (IDRs) are driven by an extremely high probability of support from the UAE authorities, if needed. Noor's Support Rating Floor (SRF) is below the UAE domestic systemically important banks' SRF of `A' due to its small market share and franchise, which is partially offset by significant government and ruling family ownership. VR Reflects Small Franchise: Noor's Viability Rating (VR) reflects the bank's small but established franchise, diversified business model and sound funding and liquidity. The VR also factors in Noor's weak but improving asset-quality metrics, with a still high problem financing ratio given the bank's exposure to legacy restructured Dubai government-related entities (GREs), weak but strengthening profitability and weak core capital ratios. Small but Strengthening Franchise: Noor has been diversifying its business model and strengthening its small franchise with a clear and well-articulated strategy. We...
