Ratings are assigned following June 2018 update to Moody's Banks rating methodology
Limassol, June 27, 2018 -- Moody's Investors Service ("Moody's") has today
assigned Counterparty Risk Ratings (CRR) to 46 rated banks and their branches.
These banks are domiciled in the following five countries: Bahrain,
Kuwait, Oman, Qatar and the United Arab Emirates (UAE).
Moody's CRR are opinions of the ability of entities to honour the
uncollateralised portion of non-debt counterparty financial liabilities
(CRR liabilities) and also reflect the expected financial losses in the
event such liabilities are not honoured. CRR liabilities typically
relate to transactions with unrelated parties. Examples of CRR
liabilities include the uncollateralised portion of payables arising from
derivatives transactions and the uncollateralised portion of liabilities
under sale and repurchase agreements. CRRs are not applicable to
funding commitments or other obligations associated with covered bonds,
letters of credit, guarantees, servicer and trustee obligations,
and other similar obligations that arise from a bank performing its essential
operating functions.
RATINGS RATIONALE
In assigning CRRs to the banks and branches subject to this rating action,
Moody's starts with the banks' adjusted Baseline Credit Assessment
(BCA) and uses the agency's basic Loss-Given-Failure
(LGF) approach which is applied to banks in jurisdictions without operational
resolution regimes. For these banks Moody's believes that
CRR liabilities have a lower probability of default than the banks'
deposit and senior unsecured debt, where such ratings are assigned,
as they will more likely be preserved in order to minimise banking system
contagion, minimise losses and avoid disruption of critical functions.
For this reason, Moody's assigns the CRR, prior to government
support, one notch above the adjusted BCA, unless the adjusted
BCA is already two notches above the government rating.
Furthermore for these banks, Moody's considers the likelihood
of government support for CRR liabilities to be in line with Moody's
support assumptions on deposits and senior unsecured debt, resulting
in additional notches of uplift from their respective adjusted BCAs,
reflecting each bank's importance to its domestic banking system.
The CRR liabilities will not benefit from any government support if the
CRR, prior to government support, is already at or above the
government rating level.
The following ratings were assigned:
-- BAHRAIN
- BBK B.S.C.
Local currency and foreign currency long-term Counterparty Risk
Ratings of Ba3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
- Bahrain Islamic Bank B.S.C.
Local currency and foreign currency long-term Counterparty Risk
Ratings of B1
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
- Khaleeji Commercial Bank B.S.C.
Local currency and foreign currency long-term Counterparty Risk
Ratings of Ba3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
- National Bank of Bahrain BSC
Local currency and foreign currency long-term Counterparty Risk
Ratings of Ba3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
-- BAHRAIN (offshore)
- Gulf International Bank BSC
Foreign currency long-term Counterparty Risk Ratings of Baa1
Foreign currency short-term Counterparty Risk Ratings of P-2
-- KUWAIT
- Al Ahli Bank of Kuwait K.S.C.P.
Local currency and foreign currency long-term Counterparty Risk
Ratings of A1
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- Ahli United Bank K.S.C.P
Local currency and foreign currency long-term Counterparty Risk
Ratings of A1
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- Boubyan Bank K.S.C.P.
Local currency and foreign currency long-term Counterparty Risk
Ratings of A2
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- Burgan Bank K.P.S.C.
Local currency and foreign currency long-term Counterparty Risk
Ratings of A2
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- Commercial Bank of Kuwait K.P.S.C.
Local currency and foreign currency long-term Counterparty Risk
Ratings of A2
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- Gulf Bank K.S.C.P.
Local currency and foreign currency long-term Counterparty Risk
Ratings of A2
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- Kuwait Finance House K.S.C.P.
Local currency and foreign currency long-term Counterparty Risk
Ratings of A1
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- National Bank of Kuwait S.A.K.P.
Local currency and foreign currency long-term Counterparty Risk
Ratings of Aa2
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- WARBA Bank K.S.C.P.
Local currency and foreign currency long-term Counterparty Risk
Ratings of Baa1
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-2
-- OMAN
- Bank Dhofar SAOG
Local currency and foreign currency long-term Counterparty Risk
Ratings of Baa3
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-3
- Bank Muscat SAOG
Local currency and foreign currency long-term Counterparty Risk
Ratings of Baa2
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-2
- Bank Nizwa SAOG
Local currency and foreign currency long-term Counterparty Risk
Ratings of Ba1
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
- Bank Sohar SAOG
Local currency and foreign currency long-term Counterparty Risk
Ratings of Ba1
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
- National Bank of Oman Limited (SAOG)
Local currency and foreign currency long-term Counterparty Risk
Ratings of Baa3
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-3
- HSBC Bank Oman SAOG
Local currency and foreign currency long-term Counterparty Risk
Ratings of Baa2
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-2
- Oman Arab Bank (SAOC)
Local currency and foreign currency long-term Counterparty Risk
Ratings of Baa3
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-3
-- QATAR
- Ahli Bank Q.S.C.
Local currency and foreign currency long-term Counterparty Risk
Ratings of A1
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- Al Khalij Commercial Bank (al khaliji) PQSC
Local currency and foreign currency long-term Counterparty Risk
Ratings of A2
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- Barwa Bank Q.S.C.
Local currency and foreign currency long-term Counterparty Risk
Ratings of A1
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- Doha Bank Q.P.S.C
Local currency and foreign currency long-term Counterparty Risk
Ratings of A2
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- International Bank of Qatar (Q.S.C.)
Local currency and foreign currency long-term Counterparty Risk
Ratings of A1
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- Masraf Al Rayan (Q.P.S.C.)
Local currency and foreign currency long-term Counterparty Risk
Ratings of Aa3
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- Qatar International Islamic Bank (Q.S.C.)
Local currency and foreign currency long-term Counterparty Risk
Ratings of A1
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- Qatar Islamic Bank Q.P.S.C.
Local currency and foreign currency long-term Counterparty Risk
Ratings of Aa3
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- Qatar National Bank (Q.P.S.C.)
Local currency and foreign currency long-term Counterparty Risk
Ratings of Aa3
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- The Commercial Bank (P.S.Q.C.)
Local currency and foreign currency long-term Counterparty Risk
Ratings of A2
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
-- UNITED ARAB EMIRATES (UAE)
- Abu Dhabi Commercial Bank
Local currency and foreign currency long-term Counterparty Risk
Ratings of Aa3
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- Abu Dhabi Islamic Bank
Local currency and foreign currency long-term Counterparty Risk
Ratings of A1
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- Al Hilal Bank PJSC
Local currency and foreign currency long-term Counterparty Risk
Ratings of A1
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- Commercial Bank of Dubai PSC
Local currency and foreign currency long-term Counterparty Risk
Ratings of A3
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-2
- Dubai Islamic Bank PJSC
Local currency and foreign currency long-term Counterparty Risk
Ratings of A2
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- Emirates NBD PJSC
Local currency and foreign currency long-term Counterparty Risk
Ratings of A2
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- First Abu Dhabi Bank PJSC
Local currency and foreign currency long-term Counterparty Risk
Ratings of Aa2
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- HSBC Bank Middle East Limited
Local currency and foreign currency long-term Counterparty Risk
Ratings of A2
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- Invest bank P.S.C.
Local currency and foreign currency long-term Counterparty Risk
Ratings of Baa3; placed on review for downgrade
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-3; placed on review for downgrade
- MashreqBank psc
Local currency and foreign currency long-term Counterparty Risk
Ratings of A3
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-2
- National Bank of Fujairah PJSC
Local currency and foreign currency long-term Counterparty Risk
Ratings of A3
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-2
- Sharjah Islamic Bank PJSC
Local currency and foreign currency long-term Counterparty Risk
Ratings of A2
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- The National Bank of Ras Al-Khaimah (P.S.C.)
Local currency and foreign currency long-term Counterparty Risk
Ratings of A3
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-2
- Union National Bank PJSC
Local currency and foreign currency long-term Counterparty Risk
Ratings of Aa3
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-1
- United Arab Bank PJSC
Local currency and foreign currency long-term Counterparty Risk
Ratings of Baa1
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-2
What Could Change the Rating Up/Down
The CRR may be upgraded if there is a strengthening in banks' operating
environment or financial fundamentals in a way that will lead to an upgrade
of their adjusted BCA or if Moody's revises upwards its assessment
of authorities' willingness to provide support or if Moody's
revises upwards its assessment of the government's capacity to provide
support, captured by an upgrade in the sovereign ratings or related
ceilings.
The CRR may be downgraded if there is a weakening in banks' operating
environment or financial fundamentals in a way that will lead to a downgrade
of their adjusted BCA or if Moody's revises downwards its assessment
of authorities' willingness to provide support or if Moody's
revises downwards its assessment of the government's capacity to
provide support, captured by a downgrade in the sovereign ratings
or related ceilings.
The CRR may also be impacted if the country, where banks operate
in, implements an operational resolution regime.
The principal methodology used in these ratings was Banks published in
June 2018. Please see the Rating Methodologies page on www.moodys.com
for a copy of this methodology.
The Local Market analyst for HSBC Bank Oman SAOG is Olivier Panis,
+971.4.237.9533.
The Local Market analyst for Kuwait Finance House K.S.C.P,
Abu Dhabi Islamic Bank, MashreqBank psc, Al Hilal Bank PJSC,
Dubai Islamic Bank PJSC, First Abu Dhabi Bank PJSC, Qatar
National Bank (Q.P.S.C.), Masraf Al
Rayan (Q.P.S.C.), Al Khalij Commercial
Bank (al khaliji) PQSC, Barwa Bank Q.S.C. and
Qatar International Islamic Bank (Q.S.C.) is Nitish
Bhojnagarwala, +971.4.237.9563.
The Local Market analyst for Abu Dhabi Commercial Bank, Ahli Bank
Q.S.C., BBK B.S.C.,
Bahrain Islamic Bank B.S.C., Doha Bank Q.P.S.C,
Gulf International Bank BSC, HSBC Bank Middle East Limited,
International Bank of Qatar (Q.S.C.), Khaleeji
Commercial Bank B.S.C., National Bank of Bahrain
BSC, National Bank of Fujairah PJSC, Qatar Islamic Bank Q.P.S.C.,
Sharjah Islamic Bank PJSC and The Commercial Bank (P.S.Q.C.)
is Ashraf Madani, +971.4.237.9542.
The Local Market analyst for Ahli United Bank K.S.C.P,
Bank Dhofar SAOG, Bank Muscat SAOG, Bank Nizwa SAOG,
Bank Sohar SAOG, Boubyan Bank K.S.C.P.,
Commercial Bank of Dubai PSC, Emirates NBD PJSC, Invest bank
P.S.C., National Bank of Oman Limited (SAOG),
Oman Arab Bank (SAOC), The National Bank of Ras Al-Khaimah
(P.S.C.), Union National Bank PJSC, WARBA
Bank K.S.C.P. and United Arab Bank PJSC ratings
is Mik Kabeya, +971.4.237.9590.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the credit rating action on the support provider and in relation to
each particular credit rating action for securities that derive their
credit ratings from the support provider's credit rating.
For provisional ratings, this announcement provides certain regulatory
disclosures in relation to the provisional rating assigned, and
in relation to a definitive rating that may be assigned subsequent to
the final issuance of the debt, in each case where the transaction
structure and terms have not changed prior to the assignment of the definitive
rating in a manner that would have affected the rating. For further
information please see the ratings tab on the issuer/entity page for the
respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Items color coded in purple in this Press Release relate to unsolicited
ratings for a rated entity which is non-participating.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com,
for each of the ratings covered, Moody's disclosures on the
lead rating analyst and the Moody's legal entity that has issued
the ratings.
The relevant office for each credit rating is identified in "Debt/deal
box" on the Ratings tab in the Debt/Deal List section of each issuer/entity
page of the website.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Nondas Nicolaides
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service Cyprus Ltd.
Porto Bello Building
1, Siafi Street, 3042 Limassol
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
Sean Marion
MD - Financial Institutions
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
Releasing Office:
Moody's Investors Service Cyprus Ltd.
Porto Bello Building
1, Siafi Street, 3042 Limassol
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454