NBO’s IDRs reflect Fitch’s view of a high probability of support being available from the Omani authorities, if needed, given the strong history of support for the banking system from the regulator, the Central Bank of Oman (CBO) and NBO’s systemic importance. Potential support from NBO’s largest shareholder, Commercial Bank of Qatar (CBQ, A/Stable/F1) is also possible, but is not factored into the ratings.
The VR reflects NBO’s high concentrations on both sides of the balance sheet (although NBO’s concentration levels are lower than those of many domestic peers), its just adequate and declining capitalisation and a reliance on wholesale deposits. It also reflects the bank’s strong franchise in the domestic market, solid operating profitability, sound asset quality and adequate liquidity.
The Peninsula
