Fitch Ratings has upgraded the Long-term Issuer Default Ratings (IDR) of QIIB to A+ from A.
The outlook on QIIB’s long-term IDR is ‘Stable’, indicating the bank’s financial strength and liquidity.
QIIB’s upgrade by Fitch follows the sovereign rating of Qatar by Fitch at ‘AA’ with a stable outlook, which underscores the fact that QIIB is in total alignment with various sectors of the vibrant Qatari economy.
Commenting on the Fitch upgrade, QIIB Chief Executive Officer, Mr Abdulbasit Ahmad Al-Shaibei said, “We are proud to be a part of the success and strength of the Qatari economy.
The credit rating upgrade of QIIB is a reflection of the prestigious level enjoyed by the Qatari economy.
The new legislation that is applicable to the country’s banking sector, the strength of Qatar’s banking sector and the opportunities offered by the national economy are all factors that helped us grow and perform well. Our activities have been mainly focused on the domestic market, which provides numerous opportunities.”
Mr Al-Shaibei said QIIB had been successful in implementing the strategic plans approved by the bank’s Board of Directors. The bank has been able to get continuous ratings upgrade by various global rating agencies.
He pointed out that the Bank’s capital base would increase with the approval granted by its shareholders at the General Assembly held on March 15, 2015 to raise up to QR3bn through an additional Tier 1sukuk issuance, which will be used to support the bank’s capital requirements for future growth and expansion. It will also strengthen the Bank’s capital adequacy ratio.
It is worth mentioning that the bank maintain a strong capital adequacy according to Basel 3 at 18,8% in the end of 2014 .
Last year Moody’s raised its outlook on QIIB from ‘Stable’ to ‘Positive’ whilst affirming the Bank’s ratings at A3.