Fitch Ratings has downgraded
Fitch placed Mashreq's VR on RWN in
Key Rating Drivers
Mashreq's IDRs (A/F1) and GSR (a) reflect an extremely high probability of support available to the bank from the
Unless noted below, the key rating drivers for Mashreq are those outlined in our Rating Action Commentary published on
Rating Sensitivities
Factors that could, individually or collectively, lead to negative rating action/downgrade:
A sharp deterioration in asset quality impacting profitability and capital could trigger a downgrade of the VR. Evidence of an increased risk profile, including continued high lending growth that is consistently above the market, or recurrent mark-to market losses would also pressure the VR.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
An upgrade of the VR would require a sustained improvement in the bank's capitalisation with the CET1 capital ratio returning to around 14%-15%, and without material deterioration in the bank's risk profile, asset quality and profitability.
Best/Worst Case Rating Scenario
International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from '
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
Public Ratings with Credit Linkage to other ratings
Mashreq's IDRs are linked to the
ESG Considerations
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg
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