Jordan Islamic Bank’s Long-Term Issuer Default Rating (IDR) Affirmed at BB-; Outlook Negative: Fitch Ratings

Fitch Ratings (Fitch) has affirmed at BB- Jordan Islamic Bank's (JIB) Long-Term Issuer Default Rating (IDR), with a Negative Outlook. At the same time, Fitch has also affirmed all of JIB's other ratings. JIB's IDRs are driven by its standalone credit profile, as defined by its Viability Rating (VR).

Fitch’s assessment of the VR accounts for JIB’s strong domestic franchise position, being the largest Islamic bank in Jordan with a sound funding and liquidity profile. However, the VR also takes into account exposure to the weakening operating environment domestically, putting added pressure on JIB’s profitability, asset quality, and just-sufficient capitalisation.

The Negative Outlook incorporates the continued impact of COVID-19 on JIB’s profitabili...