Moody’s takes rating actions on seven Omani banks

Muscat - 

Moody’s Investors Service has downgraded the long-term local and foreign currency deposit ratings of five Omani banks: Bank Muscat, BankDhofar, National Bank of Oman (NBO), Sohar International Bank and Oman Arab Bank (OAB).

At the same time, Moody’s affirmed the long-term local currency deposit ratings and downgraded the long-term foreign currency deposit ratings of two banks: HSBC Bank Oman and Bank Nizwa.

The ratings agency has changed the outlook to stable from negative on the long-term deposit ratings of all seven Omani banks. These ratings actions, Moody’s said, follow Moody’s downgrade of the government of Oman’s issuer rating to Ba2 with a stable outlook from Ba1 with a negative outlook. ‘The change in outlook to stable from negative on the Omani banks’ long-term deposit ratings reflects the stable outlook on the sovereign rating, which signals resilience in the Omani government’s credit strength as well as in its capacity to support the country’s banks in case of need,’ Moody’s said.

In terms of governance considerations, Moody’s said that it does not have any particular governance concern for Omani banks. The conservative regulatory framework in Oman helps in supporting the banks’ governance practices, it added.

Bank Muscat

Moody’s downgraded Bank Muscat’s long-term local currency deposit rating to Ba2 from Ba1, and downgraded its Baseline Credit Assesment (BCA) and adjusted BCA to ba2 from ba1. Bank Muscat’s long-term local currency deposit rating continues to be aligned with the rating of the Oman sovereign. Moody’s downgraded the bank’s long-term foreign currency deposit rating to Ba3 from Ba2 in line with the new relevant foreign currency deposit ceiling. At the same time, the ratings agency has changed the outlook on the bank’s long-term deposit ratings to stable from negative.

HSBC Bank Oman

Moody’s affirmed HSBC Bank Oman’s long-term local currency deposit rating at Ba1, downgraded its adjusted BCA to ba1 from baa2, and downgraded its BCA to ba2 from ba1. Moody’s downgraded the bank’s long-term foreign currency deposit rating to Ba3 from Ba2 in line with the new relevant foreign currency deposit ceiling. At the same time, the ratings agency has changed the outlook on the bank’s long-term deposit ratings to stable from negative.

BankDhofar

Moody’s downgraded BankDhofar’s long-term local currency deposit rating to Ba2 from Ba1, and affirmed its BCA and adjusted BCA at ba3. Moody’s downgraded the bank’s long-term foreign currency deposit rating to Ba3 from Ba2 in line with the new relevant foreign currency deposit ceiling. The ratings agency has also changed the outlook on the bank’s long-term deposit ratings to stable from negative.

NBO

Moody’s downgraded NBO’s long-term local currency deposit rating to Ba2 from Ba1, and downgraded its BCA and adjusted BCA to ba3 from ba2. Moody’s downgraded the bank’s long-term foreign currency deposit rating to Ba3 from Ba2 in line with the new relevant foreign currency deposit ceiling. At the same time, the rating agency has changed the outlook on the bank’s long-term deposit ratings to stable from negative.

Sohar International

Moody’s downgraded Sohar International’s long-term local currency deposit ratings to Ba2 from Ba1, and affirmed its BCA and adjusted BCA at ba3. Moody’s downgraded the bank’s long-term foreign currency deposit rating to Ba3 from Ba2 in line with the new relevant foreign currency deposit ceiling. At the same time, the ratings agency has changed the outlook to stable from negative on the bank’s long-term deposit ratings.

OAB

Moody’s downgraded OAB’s long-term local currency deposit ratings to Ba2 from Ba1, and downgraded its BCA and adjusted BCA to ba3 from ba2. Moody’s downgraded the bank’s long-term foreign currency deposit rating to Ba3 from Ba2 in line with the new relevant foreign currency deposit ceiling. At the same time, the ratings agency has changed the outlook to stable from negative on the bank’s long-term deposit ratings.

Bank Nizwa

Moody’s affirmed Bank Nizwa’s long-term local currency deposit ratings at Ba2, and affirmed its BCA and adjusted BCA at b1. Moody’s downgraded the bank’s long-term foreign currency deposit rating to Ba3 from Ba2 in line with the new relevant foreign currency deposit ceiling. At the same time, the ratings agency has changed the outlook to stable from negative on the bank’s long-term deposit ratings.

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