Bank Muscat affirmed with â€˜Stableâ€™ Outlooks
As the largest bank in Oman and the government’s flagship bank, Bank Muscat is likely to receive substantial support in case of need. The Support rating is ‘2’, reflecting the bank’s government ownership. The Financial Strength rating is affirmed at ‘A-‘; the rating is underpinned by the bank’s dominant market position in Oman, its improving profitability and its good provision coverage ratio. The bank has managed the downturn well; it was able to comfortably absorb higher impairment charges. BM’s performance in the current year has also been good. The Outlook for the Financial Strength rating is therefore changed to ‘Stable’ from ‘Negative’. Although credit risks continue to be high, CI is of the view that BM’s good earnings this year would be sufficient to absorb moderate levels of asset impairments that are likely over the coming quarters.