Oman Arab Bank’s LT FCR Lowered following Sovereign Rating Action; Outlook Remains Negative
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Oman Arab Bank’s LT FCR Lowered following Sovereign Rating Action; Outlook Remains Negative
Capital Intelligence Ratings (CI Ratings or CI) today announced that it has lowered the Long-Term Foreign Currency Rating (LT FCR) of Oman Arab Bank (OAB) to ‘ BB’ from ‘BB+’ , while maintaining the Short-Term Foreign Currency Rating (ST FCR ) at ‘B ’, following the recent downgrade of Oman’s sovereign issuer ratings to ‘BB’/Negative (from ‘BB+’/Negative) . CI Ratings has also affirmed OAB’s Bank Standalone Rating (BSR) at ‘bb’ , Core Financial Strength (CFS) rating at ‘bbb-’ and Extraordinary Support Level of Moderate . The Outloo k for the LT FCR and BSR remains Negative.
The recent downgrade of Oman sovereign’s LT FCR largely reflects a marked increase in public and external debt burdens over the past year. Notwithstanding the recent rebound in hydrocarbon prices and the implementation…