QIIB has announced that Moody's Investors Service has upgraded its long term and short term issuer rating to A2 from A3, and changed the outlook on the bank's long term ratings to stable .
This upgrade came shortly after the international ratings agency Fitch upgraded the bank’s rating from A to A+ with a ‘stable’ outlook.
Moody's rating action reflects QIIB’s strong financial position and the quality of its financial portfolio in addition to the bank’s improved and consistently strong asset quality performance, solid capitalisation, among many other factors that entitled the leading Islamic bank to this level of advanced rating.
On the occasion, QIIB Board of Directors Chairman and Managing Director HE Sheikh Dr Khalid bin Thani bin Abdullah Al Thani said, “QIIB is proud to be an active participant in the renaissance of the national economy. Our success, which has again been endorsed through Moody’s upgrade of our ratings, is very much part of the overall success achieved by the Qatari economy in various fields.”
Sheikh Dr Khalid said, “The considerable efforts made by the Executive Management and all employees of QIIB facilitated the upgrade of the bank’s credit ratings, which will help create a solid basis for our expansion, strengthen the bank’s position and enhance its contribution to Qatar’s banking sector.”
He stressed that QIIB would continue to play its significant role in the Qatari economy and contribute to the financing of different projects in various sectors. The bank will not spare any effort in achieving further upgrade of the key ratings to the best local and global banking standards.”
QIIB Chief Executive Officer, Mr. Abdulbasit Al-Shaibei said, “The bank's rating upgrade is a proof of the steadiness of its financial position and a reflection of its strong performance. We are pleased with the progress we are making, which was the result of long and continuous efforts and a thorough application of the strategic plan laid down by our Board of Directors, one that focuses on improving all the bank’s work and performance standards and maximising shareholders' rights, customers’ services while meeting their needs and expectations in an optimum way.”
He said, “We are also proud to see our success and accomplishment as part of the revival and success of Qatar's economy, which is advancing at an accelerated pace and achieving growth and higher indicators, which are one of the best at the global level and fully endorsed by economic experts.”
Al Shaibei affirmed that “Moody’s and Fitch’s decisions to upgrade QIIB’s rating is a strong indication that the bank is moving steadily towards achieving its interim and strategic goals and that, in future, it will see more growth and upgradation in its various financial indicators.”
The Chief Executive Officer underlined the fact that QIIB will continue to strengthen its position and register excellent financial results, based on the achievements it has realised so far, and on a well-established customer base and capacity, which was consolidated over a long period that saw innovation, renewal and meeting customers’ expectations.”
“What the bank mainly relies on is the strength of the Qatari economy and the rich opportunities it provides, particularly because of the large and diverse projects being implemented in the various sectors that provide the right ambience for business growth. And with the distinctive legislative structure and the high level of transparency that characterise Qatar's economy, we are on the right track of success and growth.”
Mr Al Shaibei also said QIIB’s capital base would get further strengthened with the bank’s shareholders at their General Assembly held on March 15, 2015, approving the issuance of sukuk of up to QR3bn, which will be used to support the bank’s capital requirements for future growth and expansion, locally and overseas.
This, he said, will improve QIIB’s liquidity and capital adequacy ratios and noted that the bank’s capital adequacy in December 2014 in accordance with the Basel III requirements was 18.8%.