Fitch upgrades QIIB rating to ‘A’ with stable outlook

Doha, Qatar: Fitch Ratings announced the upgrade of its credit rating of QIIB to A from A , which follows a similar rating action on Qatar s sover...

Doha, Qatar: Fitch Ratings announced the upgrade of its credit rating of QIIB to “A” from “A-”, which follows a similar rating action on Qatar’s sovereign on March 20, 2024 to “AA” with a stable outlook.

On the rationale behind upgrading the rating of QIIB, Fitch stated that it reflects the agency’s view on the increased ability of support that the Bank can get from the Qatari Government if needed.

Additionally, the Qatari government demonstrates a strong propensity to support all local banks regardless of their size or ownership.

In its previous report on QIIB in September last year, Fitch affirmed, “The bank exhibits financial strength, a strong market position, sufficient core capital, good asset quality, strong profitability, and stable funding.”

Fitch further added, “QIIB’s profitability metrics are stronger than its direct peers due to profit margins and effective cost management. The bank primarily relies on customer deposits to finance its operations, which largely come from individuals. Therefore, the concentration in the deposit base is lower than its local peers.