DOHA: International credit ratings agency ‘Fitch Ratings’ has upgraded Qatar International Islamic Bank’s (QIIB) Long-term Issuer Default Ratings (IDR) to ‘A’ from ‘A-’ with a stable outlook.
In a press statement yesterday, International Islamic, one of Qatar’s leading Shariah-compliant lender said that the upgrade of QIIB’s IDR is driven by a revision of its Support Rating Floors (SRFs) International Islamic’s viability rating (VR) reflects its high sector and single-name financing concentrations, which increases the risk of fluctuation in asset quality, and its relatively small franchise. The VR also factors in the bank’s sound funding profile, with a more diversified funding base than some peers, and solid liquidity.
International Islamic is well managed and upside to the VR could arise if the bank was able to reduce borrower concentrations. A material weakening of asset quality severely affecting profitability and capital, which Fitch considers unlikely, would put downward pressure on the VR.
Abdulbasit Al Shaibei, ECO of International Islamic, said: “Considerable efforts made towards the effect have paid off and it reflects the short and long term strategy laid by the QIIB Board of Directors.
The Peninsula
