Mohammed Al Barwani New Sukuk Issuance SPC – Issue Rating Raised to ‘omBBB’

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has raised the issue rating on the Oman National Scale assigned to the OMR30.1mn five-year Wakala sukuk issued by Mohammed Al Barwani New Sukuk Issuance SPC (the Issuer) to ‘omBBB’, from ‘omBB+’. The sukuk was issued in June 2023. The Outlook on the raised rating remains Stable. The Issuer is a sole proprietor company incorporated in Oman by Mohamed Al Barwani LLC Group (MB or the Obligor) for the purpose of issuing the sukuk certificates.

The improvement in the sukuk rating is driven by the improving trend in tangible net worth and a declining trend in leverage. These improvements are seen as more than offsetting a limited softening in some liquidity indicators and the expected pressures on margins from oil prices in a lower range than in 2023-24. The overall sukuk rating is driven by CI Ratings’ assessment of the fundamental credit strength and general repayment capacity of MB, as the Issuer’s…