Sunday 05, June 2011 by
Moody's assigns QIIB A3/P-2/D+; outlook stable
The assigned BFSR considers QIIB's solid financial fundamentals, especially the very high capitalisation levels—with a Tier 1 capital ratio at 28.6 per cent (as of end-March 2011) – and good core earnings-generating capability and satisfactory asset-quality levels, with a non-performing assets ratio of 3.2 per cent (at end-March 2011). Moody's has also considered the favourable operating conditions in the Qatari banking system, as well as the history of proactive and ongoing support by the Qatari authorities to local banks. However, QIIB's BFSR is constrained by the bank's modest, but improving, franchise and its high geographic and sectoral credit concentrations mainly in real-estate-related financing.
