CI upgrades OAB’S credit rating to BB+ with stable outlook

MUSCAT: Oman Arab Bank (OAB) announced that the international credit rating agency, Capital Intelligence Rating (CI), has raised its Longterm Foreign Currency Rating (LT FCR) from “BB” to “BB+” and the Bank Standalone Rating (BSR) from “bb” to “bb+”, revising its outlook from positive to stable.

These changes follow the recent upgrade of Oman’s sovereign rating from “BB” to “BB+” and the one notch increase in the Operating Environment Risk Anchor (OPERA).

In addition, OAB’S Shortterm Foreign Currency (ST FCR) Rating of “B”, Core Financial Strength (CFS) rating of “bbb-” and Extraordinary Support Level (ESL) rating of Moderate have all been affirmed.

Commenting on the report, Sulaiman al Harthy, Chief Executive Officer of Oman Arab Bank said, “OAB’S upgrade along with the upgrade of the Government of Oman reflects the positive impact of the prudent national fiscal measures the country has undertaken to improve its fiscal and economic position and increase Oman’s resilience to potential future shocks.

The report also highlighted OAB’S sound financial metrics, strong deposits base, and substantial loan-loss coverage as well as our good capital and leverage levels.”

He added, “Our strategy moving forward will aim to continue diversifying our activities, not losing sight of our primary focus — the customer.

The strong growth we have achieved in the past year demonstrates our strong position in the market enabled by our focused approach to risk management, as we look forward to further development and growth across all areas.”

Leveraging the current positive economic climate and strong financial position, OAB will continue to solidify its leadership in Oman’s rapidly evolving financial landscape through innovation and digitalisation to efficiently and securely cater to its customer’s ever-changing needs.