Moody's Investors Service has upgraded the long-term foreign currency deposit ratings to A3 from Baa2 for three Qatari banks. This rating action follows Moody's recent upgrade of Qatar's foreign currency country ceiling for bonds and bank deposits to A3 from Baa2. The affected banks are Commercial Bank of Qatar (CBQ), Doha Bank and Qatar National Bank (QNB). The outlook for the ratings of all three banks is stable.
The upgrading of the long-term foreign currency deposit ratings for the three Qatari banks to A3 from Baa2 is based on the strong likelihood of support from the Qatari authorities, should the need arise. Moody's believes that all three banks are very significant and important institutions for the domestic banking system, and that a possible failure of any of them would lead to a systemic crisis.
In the past, the Qatari authorities have supported domestic banks in difficulty without exception, and Moody's does not anticipate any change in that policy over the medium term. Nevertheless, any future upgrade of the rating ceiling for Qatari bank deposits would not automatically result in a corresponding increase in any of the banks' ratings for deposits.
The ratings changes are as follows: Commercial Bank of Qatar (CBQ) whose long-term foreign currency deposit rating was upgraded to A3 from Baa2. The Prime-2 short-term foreign currency deposit rating and the D+ financial strength rating remain unchanged.
As for the Doha Bank, the long-term foreign currency deposit rating upgraded to A3 from Baa2. The Prime-2 short-term foreign currency deposit rating and the D financial strength rating remain unchanged.
Qatar National Bank’s long-term foreign currency deposit rating was upgraded to A3 from Baa2. The Prime-2 short-term foreign currency deposit rating and the D+ financial strength rating remain unchanged.
At the end of 2001, Commercial Bank of Qatar had total assets of 5.2 billion Qatari riyals ($1.4 billion); Doha Bank had total assets of QR6.5 billion ($1.8 billion) and Qatar National Bank had total assets of QR28.4 billion ($7.8 billion). All banks are headquartered in Doha, Qatar. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
