S&P upgrades CB’s rating to ‘A-’ from ‘BBB+’ with stable outlook
S&P Global Ratings have raised their long-term issuer credit rating on the Commercial Bank to ‘A-’ from ‘BBB+’ and affirmed the ‘A-2’ short-term rating. The outlook is stable.
In a statement, S&P said, “We believe that Commercial Bank’s stand-alone creditworthiness has strengthened, given improved asset quality and lower exposure to high-risk sectors and geographies.”
The rating agency also highlighted the key role of the Qatari authorities in providing support to the bank. As stated in the report, it said, “The government’s plan to reduce its debt ratios implies lower lending opportunities for the banking system. At the same time, we believe that system-wide asset-quality indicators will remain stable at contained levels over 2023.”
Commercial Bank Group Chief Executive Officer Joseph Abraham said, “This upgrade in Commercial Bank’s rating by S&P reflects the bank’s strategy in continuing to reduce risks on its balance sheet while maintaining strong capitalisation.
For Commercial Bank, S&P’s stable outlook reflects the Bank’s improved quality of earnings generation, strong capital and liquidity, and the focused execution of our fiveyear strategic plan.
Commercial Bank is also rated by Moody’s at A2/P-1 and Fitch at A-/F2, both with a stable outlook.