In our view, the quality of Sharjah Islamic Bank's loan portfolio has improved because of the bank's continued growth focus in Sharjah's public sector. These entities' good asset quality will drive lower credit losses versus the last three years. At the same time, we believe that IFRS 9 implementation will have a negative impact on Sharjah Islamic Bank's capitalization, and we expect its risk-adjusted capital ratio before adjustments will stand at 13.8%-14.2% over the next 18-24 months. We are affirming our 'BBB+/A-2' ratings on Sharjah Islamic Bank. The stable outlook reflects our view that the bank's business and financial profiles will remain broadly unchanged over the next 24 months. On June 7, 2018, S&P Global Ratings affirmed its 'BBB+/A-2' long-
