Doha: Fitch Ratings has once again affirmed Commercial Bank’s unchanged long-term issuer default rating at ‘A’ with a stable outlook.
The rating is driven by an “extremely high probability” of support from the Qatari authorities, and reflects Qatar’s strong ability to support domestic banks.
As per the report released by Fitch, Commercial Bank’s strong commercial banking franchise is underpinned by established public and private corporate relationships.
According to Fitch, Commercial Bank has succeeded in executing its turnaround strategy that began in 2016 by strengthening its core capitalisation; reducing its concentration in real estate and contracting and increasing government and public sector exposure; improving operational efficiency; and strengthening risk controls, and oversight of international operations.
Joseph Abraham, Group Chief Executive Officer of Commercial Bank, said: “Given the challenges imposed by COVID-19, the affirmation of Commercial Bank’s stable outlook is a very positive outcome. It is mainly due to the prudent economic management by the Government of Qatar as well as our financial strength and commitment to our strategy established in 2016.”
With Fitch’s rating in place, Commercial Bank currently enjoys strong credit ratings from all the major agencies. The Bank’s long-term outlook is rated A3 by Moody’s, and BBB+ by Standard & Poor’s. All ratings with a stable outlook.
