Moody’s upgrade its outlook on Qatar’s banking sector to “stable” from “negative” as the pandemic challenges recede.
Event Location
Qatar, Qatar
Start Time
01 May 2022, 12:00 AM
End Time
31 May 2022, 12:00 AM
Global credit rating agency Moody’s has upgraded its outlook on Qatar’s banking sector to “stable” from “negative.”
“This reflects our view that operating conditions for the banks have stabilized as the challenges of the pandemic and low oil prices reverse, and the economy recovers,” the rating agency said on its report.
The banks’ loan performance remains strong despite some of the lenders having operations in countries with weaker economic conditions.
Moody’s indicated the high rate of liquidity coverage in Qatari banks, which exceeds 100 percent, in addition to the high capital adequacy ratio to 19.7 percent last year, liquid assets are expected to remain strong and stable at 24 percent of total assets, with improved net income for tangible assets backed by robust efficiency.
With the stable sovereign credit rating of /Aa3/ for the State of Qatar, Moody’s confirmed the continuity of the government’s ability to support banks in maintaining their strength, according to a previous report issued by Standard & Poor’s, the largest rating agency in terms of market share, in which the results were published, measuring the impact of the Russian-Ukrainian war on a sample of banks in a number of countries in the region, including the State of Qatar.
Overall, the results confirmed that Qatari banks were not affected by global geopolitical developments.
Qatar banking news 2022Qatar banking Moody’s stable