Fitch affirms QIIB’s rating at ‘A’ with stable outlook
The Peninsula
Doha, Qatar: Leading international credit rating agency Fitch announced that it has affirmed QIIB s rating at A with a stable outlook, which indicat...
Doha, Qatar: Leading international credit rating agency Fitch announced that it has affirmed QIIB’s rating at ‘A’ with a stable outlook, which indicates the strength of the bank’s indicators and its solid financial position.
Explaining the rationale behind affirmation of QIIB rating, Fitch noted, “QIIB’s rating reflects its established, Islamic-banking franchise in Qatar, high financing concentrations and adequate core capitalisation. It also reflects the bank’s reasonable asset quality, solid profitability and stable funding and liquidity with a lower reliance on non-resident funding than its peers.”
The Fitch report explained, “The operating conditions are good in the bank, as the special reserve coverage reached 95 percent at the end of the first quarter of 2024 and is considered one of the distinguished ratios compared to its local banking counterparts.”
Fitch expects QIIB’s asset quality to remain stable. It is also expected that QIIB will maintain strong profitability with operating efficiency.
In addition, QIIB is expected to continue to maintain stable financing primarily derived from customer deposits, which is a strength of the bank compared to its local counterparts.
