Fitch cuts Qatari banks

Fitch Ratings said it downgraded seven Qatari banks' long-term issuer default ratings and removed them from rating watch negative.

The agency said the action reflects the Qatari banking sector's increased reliance on external funding and recent rapid asset growth, which Fitch believes has weakened the sovereign's ability to provide support to the system, in case of need.

Fitch said it does not believe the current higher oil prices will substantially benefit these metrics over the rating horizon.

Fitch downgraded Qatar National Bank QPSC's long-term issuer default rating to A from A+ and removed it from rating watch negative. Its F1 short-term issuer default rating has been affirmed and removed from rating watch negative as it already maps to the lower of the two options for an A long-term issuer default rating, Fitch said.

Fitch also downgraded Qatar Islamic Bank QPSC's, Doha Bank QPSC's, Commercial Bank PSQC's, Qatar International Islamic Bank's, Ahli Bank QPSC's and Dukhan Bank QPSC's long-term issuer default ratings to A- from A and short-term issuer default ratings to F2 from F1.

All banks' viability ratings are unaffected.

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