Fitch Affirms Bank Muscat’s BB+ Rating, Cites Strong Market Position and Stability

Oman, 13 November, 2024 : Fitch Ratings has affirmed Bank Muscat’s Long-Term Issuer Default Rating (IDR) at ‘BB+’ with a stable outlook, along with its Viability Rating (VR) at ‘bb+’. The bank's ratings are driven by its solid standalone financial performance, supported by potential backing from Omani authorities due to its strong ties to the government and public sector.

Bank Muscat’s VR reflects its position as Oman’s flagship bank, granting it access to quality borrowers and government funding. Fitch noted the bank’s stable asset quality, superior profitability, strong capital buffers, and solid liquidity. The Omani banking sector also benefits from favorable conditions, with high oil prices averaging around $80 per barrel, surpassing Oman’s fiscal break-even.

Fitch highlighted Bank Muscat’s pricing power, robust market position, and low-cost funding base, which support its profitability. The bank’s asset quality remains steady, with a Stage 3 loan ratio of 3.8% at the end of Q3 2024. Its operating profit, at 2.4% of risk-weighted assets in the first nine months of 2024, outperforms domestic peers due to a strong net interest margin and diverse revenue streams.

Source : www.zawya.com