Research Update: Bahrain-Based BMI Bank 'BB+/B' Ratings Affirmed On Bank Criteria Change; Outlook Negative Dec 11
- Language: English
- Published: December 2011
The public information ("pi") rating on Bank Muscat S.A.O.G. reflects the bank's leading domestic market position, which has been bolstered by domestic expansion via acquisitions, and adequate earnings and capital. The rating is constrained, however, by the high level of economic risk in Oman, some reliance on wholesale funding at the bank, and a relatively high-risk lending profile, due to lack of geographic diversification and single-party and sector lending concentrations. After merging with Commercial Bank of Oman (CBO) in 2000, Bank Muscat became the leading player in the domestic banking sector. The merger took place after the largest shareholder of Bank Muscat, the Diwan of the Royal Court (Diwan), representing the Sultanate of Oman, purchased a controlling 35% stake in...
Companies mentioned in this report are: BankMuscat S.A.O.G.
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