Fitch assigns BBB- rating to Oman Arab Bank
Fitch Ratings has assigned Oman Arab Bank (OAB) a BBB- Long-term rating, an F3 Short-term rating, a C Individual rating and a 3 Support rating. The rating agency’s Outlook for the bank is Stable, stated a press release.
The ratings reflect OAB's moderate but consistent profitability, low cost funding, improving liquidity and satisfactory capitalization. They also consider the influence of OAB's majority shareholder, the Arab Bank group, which is reflected in OAB's conservative and prudent approach to business in a difficult operating environment.
Although asset quality declined sharply in 2002, this was due to two problem loans; the underlying loan book quality remains adequate.
OAB was established in 1984 following the purchases of branches of Arab Bank that have been operating in Oman since 1973. The shareholders of the bank from 1984 to the present day are Oman International Development and Investment Company and Arab Bank, with the latter maintaining management control.
The bank is a medium-sized bank in the small Omani market, operating through a network of 40 customer service centres. OAB focuses on offering project and trade finance facilities to local and multinational companies operating in Oman and on personal loans, and investment advisory services to the middle market and high net worth individuals. — (menareport.com)
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