Mubasher: Doha Bank on Sunday announced that Standard and Poor’s (S&P) has affirmed its credit ratings at “BBB+/A2”, along with upgrading its outlook from negative to stable.
The rating reflects the international agency’s views that Qatar has managed the negative impacts of the boycott in an effective manner, which has resulted in a limited impact on the GCC country's economic performance, according to a filing to the Qatar Stock Exchange (QSE).
The rating also reflects Doha Bank’s adequate foothold in the local economy, as the bank mainly focuses on the private-sector lending.
“The bank's capitalization is seen as a positive factor, underpinned by their forecast that the RAC ratio before concentration adjustments will remain slightly above 10% over the next 12-24 months,” the report said.
Moreover, Doha Bank has replaced the deposits of boycotting Arab countries with core deposits from the Qatari government and GREs, leading to a better-balanced funding profile more in line with those of peers.
Since 5 June 2017, Qatar has been facing outflows of foreign customers' deposits after four Arab countries led by Saudi Arabia cut their diplomatic and trade ties with the gas-rich state, accusing Qatar of financing terrorism. Doha forcefully denies the charges.
By the end of Sunday’s session, Doha Bank’s stock rose 0.47% at QAR 21.36.
