Fitch downgrades Ahli Bank

Fitch Ratings said it downgraded Ahli Bank SAOG's long-term issuer default rating to BB from BB+ and removed it from Rating Watch negative.

The outlook is stable.

Fitch also said it downgraded the bank's viability rating to BB from BB+.

The negative watch was placed following the downgrade of the Omani sovereign in December, the agency explained.

The downgrade came from a detailed analysis of the impact of the sovereign downgrade on the Omani banking sector operating environment and on Ahli Bank's credit profile, Fitch said.

The ratings also consider the tougher Omani operating environment, profitability that is lower than peers and high concentration risks, the agency said.

The negatively impacted operating environment will make it more challenging for the banks to execute their strategies, Fitch explained.

The sovereign's ability to provide support to banks also has diminished, the agency said.

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