Fitch Ratings has affirmed Qatar Islamic Bank’s (QIB) Long-term Issuer Default Rating (IDR) at ‘A’ with a Stable Outlook and Viability Rating (VR) at ‘bbb’.
QIB’s IDRs, Support Rating and Support Rating Floor reflect Fitch’s view that there would be an extremely high probability of support from the Qatari Authorities, if needed. The ratings consider the authorities’ strong history of support for the Qatari banking system as well as the strong ability and willingness to support Qatari banks.
A change in Fitch’s view of the willingness or ability of the Qatari authorities to support QIB would be negative for its IDRs and its Support Rating Floor.
However, Fitch notes recent supportive actions for the domestic banking sector including pre-emptive capital injections and assets purchases. Given the high level of QIB’s IDRs there is limited upside potential.
QIB VR reflects healthy capitalization, steady earnings, strong asset quality ratios, solid stock of liquid assets, among others.
Reuters
