Fitch Ratings has affirmed QIIB’s Long-Term Issuer Default Rating (IDR) at “A-” with a Stable Outlook


    Dr. Al-Shaibei: The high ratings enjoyed by QIIB are a reflection of the strength of the local banking sector.


QIIB announced that Fitch Ratings has affirmed the bank’s Long-Term Issuer Default Rating (IDR) at “A-” with a stable outlook, based on a number of positive indicators that the bank’s financial position enjoy. 

In its report, which was published by Fitch Ratings on its affirmation of QIIB rating, the agency noted, “The bank Long-Term Issuer rating at “A-” with a stable outlook has been affirmed based on a number of reasons related to the bank and its indicators, or the environment in which it operates, foremost of which is the strong possibility of potential government support, if needed”. 

Especially since the Qatari authorities have a strong propensity to support domestic banks, irrespective of their size or ownership, they also have a strong ability to do so, as indicated in the sovereign rating (AA-/Stable), as well as substantial net foreign assets and revenue, which enable it to provide various forms of support, if necessary. 

Fitch indicated that QIIB is also benefiting from an enhanced operating environment represented in the rise in hydrocarbon prices. The FIFA World Cup Qatar 2022 raises the demand for business in the private sector, in addition to the improving business sentiment that underpins this trend.

 Fitch noted: “QIIB is characterised by the quality of assets, sufficient core capital, and stable financing and liquidity. The strong Islamic deposit privilege also supports the bank's funding profile, which largely consists of local retail deposits with a very low reliance on external funding which also lower than peers. The bank accounts for about 12% market share of the Islamic bank’s assets. Liquidity is supported by a large stock of liquid assets.” 

Fitch explained that “QIIB's profitability metrics are stronger than its direct peers' owing to its high margins and good cost management, and the bank has a very strong financing reserve at 130%coverage of stage “3” financing”  

The Fitch report highlighted the high degree obtained by QIIB in the field of environmental, social and institutional governance structure , “the ESG credit relevance is a score of ‘3’, which indicates the ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which are being managed by QIIB”. 

Commenting on Fitch Ratings’ affirmation of QIIB rating, Chief Executive Officer, Dr Abdulbasit Ahmed al-Shaibei said, “This distinguished rating confirms the fact that QIIB continues to make progress in its performance and results. In fact, our high credit ratings are a reflection of the strength of the local banking sector, which is considered one of the strongest banking sectors – both at the regional and international levels. 

He noted, "The points mentioned in the Fitch report on QIIB's rating have many strengths on which we rely. We are working to consolidate them through our interim and strategic plans in a way that enhances returns for our shareholders and meets the aspirations of customers of all segments." 

QIIB CEO stressed, “The most important points that we have focused on recently in our strategy is improving operational efficiency by enhancing the role of technology and relying on digital services within the framework of a comprehensive transformation that we have succeeded in implementing in record time. We continue to work to enhance success in this aspect and other aspects in line with the best international standards adopted in the banking sector.” 

Dr. Al-Shaibei expressed his confidence that “QIIB will continue its upward march with respect to various indicators, taking advantage of all positive factors in the markets, and following strict standards in the field of market risk assessment while encouraging pioneering initiatives in the field of innovation and development in order to maintain QIIB’s leadership."