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Fitch Ratings has announced Bank Aljazira's (BAJ) Long-term Issuer Default Rating (IDR) at 'A-', Short-term IDR at 'F2', Individual Rating at 'C/D', Support Rating at '1' and Support Rating Floor at 'A-'. The agency has also confirmed Aljazira Capital's (AJC) Long-term IDR at 'A-' with a Stable Outlook, Short-term IDR at 'F2' and Support Rating at'1'.
High loan impairment charges have significantly influenced BAJ's profitability in the past two years. The bank has less loss-absorption capacity than peers inspite of its high cost/income ratio. Although the non-performing loans (NPLs)/gross loans ratio decreased to 6.7 per cent at end-2010, it remains high compared to peers.