Fitch Confirms QIIB Rating at ‘A-‘; “stable” outlook

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QIIB announced that Fitch Ratings confirmed the bank’s long-term issuer default (IDR) rating at “A-” with a stable outlook, based on a number of positive indicators benefiting the financial situation of the bank.
In its report, Fitch Ratings notes: “QIIB’s long-term issuer rating of ‘A-‘ with a stable outlook has been affirmed based on a number of reasons relating to the bank and its indicators, or the environment in which it operates, above all including the strong possibility of potential government support, if needed”.
Especially since the Qatari authorities have a strong propensity to support domestic banks, regardless of their size or ownership, they also have a strong ability to do so, as indicated by the sovereign rating (AA-/Stable) , as well as a substantial net external balance. assets and income, they are able to provide various forms of support, if needed.
Fitch said QIIB is also benefiting from an improved operating environment represented by higher hydrocarbon prices. The FIFA World Cup Qatar 2022 increases the demand for businesses in the private sector, in addition to the improved business climate that underpins this trend.
Fitch noted, “QIIB is characterized by quality assets, sufficient capital base and stable funding and liquidity. The strong Islamic deposit privilege also supports the bank’s funding profile, which largely consists of local retail deposits with very low reliance on external funding, also lower than that of its peers. The bank accounts for around 12% market share of Islamic banking assets. Liquidity is supported by a large stock of liquid assets.
Fitch explained that “QIIB’s profitability measures are stronger than those of its direct peers due to its high margins and good cost management, and the bank has a very strong funding reserve at 130% of funding coverage for stage ‘3’.
The Fitch Report highlighted the high degree achieved by QIIB in the area of ​​environmental, social and institutional governance structure, “ESG Credit Relevance is a score of ‘3’, indicating that ESG issues are neutral in credit or have only minimal credit impact on the entity, either because of their nature or the way they are managed by the QIIB.
Regarding the confirmation of the QIIB rating, Managing Director Dr. Abdulbasit Ahmed al-Shaibei said, “This distinguished rating confirms the fact that QIIB continues to progress in its performance and results. In fact, our high credit ratings reflect the strength of the local banking sector, which is considered one of the strongest banking sectors, both regionally and internationally.
He noted: “The points mentioned in Fitch’s QIIB rating report have many strengths on which we rely. We strive to consolidate these through our interim and strategic plans to enhance returns for our shareholders and meet the aspirations of customers in all segments. »
The CEO of the QIIB underlined: “The most important points on which we have recently focused in our strategy are the improvement of operational efficiency by reinforcing the role of technology and leveraging digital services within the framework of a global transformation that we managed to implement in record time. . We continue to work to improve success in this and other aspects in accordance with the best international standards adopted in the banking sector.

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