Doha Bank’s Long-Term Foreign Currency Rating Raised to ‘A+’

the international credit rating agency, announced last week that it has affirmed Doha Bank’s (DB) Financial Strength Rating (FSR) at ‘A’. The principal supporting factors are the Bank’s good capital base (currently being further augmented by a rights issue) and good overall asset quality. While the NPL ratio is above average for the peer group, so is the more than full loan-loss reserve coverage, and taken together, the asset quality position is seen as being sound.

Based on the still strong Qatari government balance sheet and the significant shareholding of the Qatar Holding Company in the Bank, together with the strong record of governmental systemic support for banks, the Support Rating is affirmed at ‘2’. Reflecting this support and the improved Outlook on Qatar’s Long-Term Foreign Currency Sovereign Rating of ‘AA-’/’Stable’, the Bank’s Long-Term Foreign Currency Rating (FCR) is raised to ‘A+. The’ Short-Term FCR is affirmed at ‘A2’. The Outlook on the FCR is also revised to ‘Stable’.

Commenting on the rating Dr. R. Seetharaman Doha Bank CEO said “These ratings recognize Doha Bank’s sustainable business model in response to changing market conditions in Qatar and overseas.”