Top Qatari bank gets stable outlook
Doha, May 17, 2011
Fitch Ratings has assigned Qatar International Islamic Bank (QIIB) a long-term foreign currency Issuer Default Rating (IDR) of 'A-' with a stable outlook.
The agency also gave the bank a short-term IDR of 'F2', Individual Rating of 'C/D', Support Rating of '1' and Support Rating Floor of 'A-'.
QIIB's long- and short-term IDRs and support ratings reflect the extremely high probability of support from the Qatari authorities if needed, said a statement from Fitch Ratings.
Fitch's opinion of likely support is based on the strong history of support from the Qatari authorities for local banks, reflected in recent support measures, and the Qatari government's 16.7 per cent stake in the bank.
The Individual Rating reflects QIIB's strong capital and liquidity position and consistent profitability underpinned by solid operating earnings and low levels of provisioning.
The rating is constrained by QIIB's small franchise and market share and high sector concentrations in financing.
"Fitch believes the Qatari bank's prospects are good as it positions itself to take advantage of the opportunities available in the government's expansionary budget and numerous infrastructure projects," said Mahin Dissanayake, director in Fitch's Financial Institutions team in Dubai.
"As an Islamic bank, it will also be one of the few beneficiaries of the new central bank regulation which requires conventional banks to close Islamic windows," he added.-TradeArabia News Service