Commercial Bank International’s Ratings Affirmed with a Stable Outlook

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) of Commercial Bank International (CBI or the Bank) at ‘BBB+’ and ‘A2’ respectively. At the same time, CI Ratings has affirmed CBI’s Bank Standalone Rating (BSR) of ‘bbb-’, Core Financial Strength (CFS) rating of ‘bb’ and Extraordinary Support Level (ESL) of High. The Outlook for the LT FCR and BSR remains Stable.

Although CBI continues to show weak financial metrics, its LT FCR is set two notches above the BSR to reflect the significant support expected from Qatar National Bank (QNB), a 40% shareholder. QNB’s demonstrated ordinary support in the past was vital in strengthening CBI’s financial fundamentals during its major structural transformation (QNB is rated ‘AA’/Stable by CI). Support is also available from the UAE government (rated ‘AA-’/Stable by CI).

The Bank’s…