Fitch affirms QIIB’s rating at ‘A+’ with a stable outlook

25/04/2016 08:19 AST

Fitch Ratings has affirmed QIIB’s rating at ‘A+’ with a stable outlook, thus “confirming the bank’s strong financial position and success in adjusting to the market conditions.” On the grounds for QIIB’s “good” ratings, Fitch highlighted the “bank’s sound credit portfolio and diversified funding sources in comparison with other banks in addition to its strong operational efficiency and credit rates.”

Fitch Ratings said, “The role of the Qatari Government in supporting the stability of banks when necessary is a major factor in confirming the good ratings of the Qatari banking sector. The State of Qatar currently owns shares in the capitals of local banks and has previously injected liquidity into the banking sector from 2009 until the first quarter of 2011”.

On Fitch Ratings’ affirmation, QIIB CEO Abdulbasit Ahmed al-Shaibei said, “This is certainly good news, not only for QIIB but also for Qatar’s banking sector and economy in general. It further attests the fact that QIIB has been able to achieve growth and stability despite the volatile market factors and decrease of oil prices.”

“We have confidence in QIIB’s continued performance, which is part of the Qatari economy that has seen efficiency and one that is able to find solutions to various issues and adjust to the requirements of the market. All these facts were taken into account by Fitch as they assessed QIIB’s strength and credit worthiness.” Al-Shaibei said QIIB’s financial strength was mainly driven by its focus on the local market as part of the bank’s long term strategy. This strategy revolves round making optimum use of the opportunities available locally and staying as an active participant in Qatar’s economic development.

The CEO said QIIB pursues prudent policies aimed at managing market risks and have systems in place for risk management to ensure the bank’s strength and safeguard the interests of its clients and shareholders. “The Fitch affirmation follows the recent ratings affirmation of QIIB’s financial strength at ‘A-‘ with a positive outlook by Capital Intelligence. QIIB has been able to maintain its profitability in terms of its operations, liquidity and capital adequacy at a comfortable level,” al-Shaibei said. He said QIIB would continue to extend funding to various sectors that positively contribute to the development of Qatar’s national economy.

“We are quite optimistic about our future and will do all that is possible to maintain our financial indicators,” al-Shaibei added.

Gulf Times