Moody’s rates Qatar Islamic Bank deposits A1

Moody's Investors Service said it assigned Qatar Islamic Bank QPSC A1/Prime-1 long and short term local- and foreign-currency deposit ratings, a baa2 baseline credit assessment (BCA) and a baa2 adjusted BCA.

The long-term deposit ratings carry a stable outlook.

Furthermore, the agency assigned a counterparty risk assessment of Aa3(cr)/ Prime-1(cr).

Moody’s said the baa2 BCA reflects the bank's solid asset quality, sound capital buffers, good profitability and modest market funding reliance, underpinned by its established and growing retail and corporate Islamic banking franchise.

The bank's rapid growth in recent years, as well as the weak performance of its subsidiaries and associates, moderate these strengths.

The A1 long-term deposit ratings reflect its baa2 BCA and the agency’s assessment of a “very high” probability of government support in case of need. This reflects the Government of Qatar's 16.9% ownership stake and the Qatar authorities' historical support to banks in case of need, Moody’s explained.

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