Capital Intelligence confirms quality rating for National Bank of Oman

According to a recent announcement, Capital Intelligence (CI) has confirmed that the Financial Strength Rating of the National Bank of Oman (NBO) is BBB+.

This rating is determined according to a bank’s sound capital adequacy ratio (CAR), a good loan asset quality and high Tier 1 capital, as well as improving profitability ratios. Marginal decline in the first quarter of 2015 for NBO was also taken into account.

The bank’s rating is further supported by its good market share and well established franchise. During the first quarter of 2015, the company substantially tightened its liquidity ratios, successfully making its ratios higher than its peers. An additional constraining factor the bank’s customer concentrations in the deposit base and loan book. This is a feature that is common in Omani banks, as it is the result of the area’s slow market and low savings rate.

Overall, NBO’s financial profile was sturdy by the end of the first quarter of 2015. This solidity, along with the banks fairly sound major shareholder, the Commercial Bank of Qatar (CBQ), results in NBO’s Foreign Currency Ratings stand at BBB+ Long-Term as well as A2 Short-Term. The bank’s Support Rating was confirmed 3, which is supported by the strong likelihood of receiving support from Oman’s government and CBQ, the majority shareholder.