Moody’s Upgrades Outlook on Six Omani Banks to ‘Positive’ Following Sovereign Rating Revision

Oman, 5 September, 2024 : Moody’s Ratings has upgraded the outlook on the long-term deposit ratings of six Omani banks from ‘stable’ to ‘positive.’ The banks include Bank Muscat, BankDhofar, National Bank of Oman (NBO), Sohar International Bank, Oman Arab Bank (OAB), and Bank Nizwa. Moody’s also affirmed their Baseline Credit Assessments (BCAs) and Adjusted BCAs.

The ratings for Bank Muscat and Sohar International are affirmed at Ba1, with BCAs and Adjusted BCAs aligned with those of the Government of Oman. Similarly, NBO and BankDhofar's long-term ratings are affirmed at Ba1. OAB and Bank Nizwa also retain their Ba1 ratings.

The outlook upgrade follows the revision of the Government of Oman’s rating outlook from stable to positive. Moody’s noted that a potential sovereign rating upgrade could enhance government support for these banks. The positive outlook reflects strong financial fundamentals and high government support, though a downgrade could occur if the sovereign's credit profile weakens or if there is a significant decline in the banks' solvency and liquidity.

Source : www.zawya.com