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Capital Intelligence affirms ratings of four Omani banks

25 May 2021

Global credit ratings agency Capital Intelligence (CI) Ratings announced that it has affirmed the long-term and short-term foreign currency ratings of Bank Muscat, National Bank of Oman (NBO) and Oman Arab Bank (OAB). 

CI Ratings has also affirmed the long-term and shortterm ratings of Alizz Islamic Bank on Oman national scale. CI Ratings has affirmed the long-term foreign currency rating and short-term foreign currency rating of Bank Muscat at ‘BB’ and ‘B’, respectively. 

The ratings agency kept its outlook on Bank Muscat negative, according to the statement issued by the agency. At the same time, CI Ratings has affirmed Bank Muscat’s bank standalone rating of ‘bb’, core financial strength rating of ‘bbb’ and extraordinary support level of ‘moderate’. 

For NBO, CI Ratings has affirmed the long-term foreign currency rating and short-term foreign currency rating of the bank at ‘BB’ and ‘B’, respectively. 

At the same time, CI Ratings has affirmed NBO’s bank standalone rating of ‘bb’, core financial strength rating of ‘bbb-‘ and extraordinary support level of ‘moderate’. CI Ratings has also affirmed the long-term foreign currency rating and short-term foreign currency rating of Oman Arab Bank at ‘BB’ and ‘B’, respectively. The ratings agency has affirmed OAB’s bank standalone rating of ‘bb’, core financial strength rating of ‘bbb-‘ and extraordinary support level of ‘moderate’. 

Additionally, CI Ratings affirmed Alizz Islamic Bank’s ratings and kept outlook negative. It has affirmed Alizz Islamic Bank’s long-term and short-term ratings on the Oman national scale at ‘omAA’ and ‘omA1+’, respectively. 

The outlook on Alizz Islamic Bank’s ratings remains negative, in line with the outlook assigned to Oman’s sovereign ratings, CI Ratings said. 

In a recently published report, another credit ratings agency Fitch Ratings said it expects Omani banks’ intrinsic credit profiles to remain under pressure during 2021 from the economic disruption caused by the coronavirus pandemic, low oil prices and the government’s restrictive fiscal policies. 

Fitch Ratings warned that the challenging economic conditions are likely to result in deterioration in banks’ asset quality and earnings, and potentially capitalisation.

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