Moody’s takes rating actions on 7 Omani banks
Saturday, 03 14 2020, Category: Banking, Country: Oman
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.
Source: Muscat Daily