Muscat Finance – Ratings on Oman National Scale Affirmed; Outlook Remains Negative

Ref: OM025 2 1 CRA 00-0 1 5 January 2023

Muscat Finance – Ratings on Oman National Scale Affirmed ; Outlook Re mains Negative

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the Long-Term Corporate Rating on the Oman National Scale of Muscat Finance S.A.O.G. (MF) at ‘omA-’ . The Short-Term rating on the same scale has also been affirmed at ‘omA2’. The Outlook on the ratings remains Negative .

The Outlook was placed on Negative in December 2021 due to poor asset quality and low profitability, together with what was at that time a difficult operating environment due to the impact of Covid – 19 . While the NPFR ratio had risen, this was principally due to the sizeable contraction of the financing receivables ( FRs ) book. Profitability on the other hand had however improve d due to a widening of the financing differential . T he Company returned to net profit in 2021, and remained …