Capital Intelligence raises National Bank of Oman's Financial Strength Rating
Capital Intelligence (CI) has raised the National Bank of Oman's (NBO) Financial Strength Rating to 'BBB+' supported mainly by its improved liquidity position and its large base of customer deposits. The rating is also underpinned by the sound capital adequacy ratio (CAR) together with a high Tier 1 component and its good loan asset quality. While non-performing loans (NPLs) have increased in both 2013 and Q1 2014, these remained fully covered by loan-loss reserves (LLRs). The rating also reflects the bank's well established franchise and its good market share, as well as its supportive major shareholder who continues to provide funding support by way of a standby letter of credit.