Moody's affirms Doha Bank rating at 'A2'

16/07/2017 06:07 AST

International credit rating agency Moody's has affirmed Doha Bank's A2/Prime-1 deposit ratings and its baa3 baseline credit assessment (BCA).

Doha Bank said its A2 deposits rating incorporates the bank's importance to the local financial system with a market share of around 8% in deposits; the demonstrated willingness and ability of the Qatari government to provide support to local banks, through capital injections and the purchase of real-estate and equity investment portfolios from banks; and the government's 16.7% shareholding in Doha Bank.

The bank's capitalisation levels are expected to strengthen as it recently completed a QR1.3bn rights issue, Doha Bank said. As a result, tangible common equity-to-risk weighted assets are expected to increase to 12.4% from 10.8% as of March 2017, the bank also said.

Doha Bank said it displays high liquidity buffers, with liquid assets accounting 31% of total assets as of December 2016, a ratio which is one of the highest compared to its domestic peers, the bank said. These buffers help moderate the risks related to the bank's increasing reliance on confidence-sensitive market funding, which constitutes 24% of their banking assets as of March 2017.

Doha Bank CEO Dr R Seetharaman said: "In spite of challenging market conditions, Doha Bank's rating affirmation highlights the impact of its vision and strategy to capitalise on market synergies, its ability to maintain strong growth trajectory, and impressive financial ratios. "We are proud to announce that the bank, as founder, is in the final stage of launching the QE Index ETF, which will invest and replicate the Qatar Index's largest 20 companies in terms of market capitalisation and liquid listings."

Doha Bank launched 'Doha Miles', its new loyalty programme, designed to convert credit card spends locally and internationally, into reward points, which can be redeemed against free flights and hotel bookings.

Seetharaman said: "The primary goal of Doha Bank is keep continuing its sustainable business model aligned with clear corporate governance and further develop its strong suite of products and services to enrich the resilient economy and strong banking fundamentals in Qatar."

Gulf Times