Fitch: Jordan Islamic Bank’s Ratings Affirmed, Outlook Pushed Down to Negative from Stable

Fitch Ratings (Fitch) has affirmed at BB- the Long-Term Issuer Default Rating (IDR) of Jordan Islamic Bank (JIB), whilst revising its Outlook to Negative from Stable. The Negative Outlook is based on Fitch’s analysis of added pressure on JIB’s asset quality, profitability and capital due to the on-going COVID-19 pandemic, coupled with a challenging operating macro-economic environment.

JIB’s BB- IDR affirmation is based on its stand-alone credit strength, implied through JIB’s Viability Rating (VR) of bb-. The VR reflects JIB’s strong domestic franchise, strong funding and sound liquidity. However, the VR also incorporates JIB’s anticipated asset quality deterioration, profitability u...