Research Update: Bahrain-Based BMI Bank 'BB+/B' Ratings Affirmed On Bank Criteria Change; Outlook Negative Dec 11
- Language: English
- Published: December 2011
The ratings on BankMuscat S.A.O.G. reflect the bank's dominant commercial position in its domestic market, as well as sustained and good financial performance and asset quality. Negative rating factors include its limited geographic and business diversification outside the small and concentrated Omani economy and an adequate funding position. The long-term rating on BankMuscat is one notch higher than the bank's stand-alone creditworthiness to reflect Standard & Poor's Ratings Services' expectation of strong likelihood of extraordinary support, in case of need, from the Sultanate of Oman (A/Stable/A-1). Oman is BankMuscat's largest single shareholder and directly and indirectly controls about 40% of its capital. Standard & Poor's considers the sultanate to be interventionist toward its banking sector, and BankMuscat a systemically important...
Companies mentioned in this report are: BankMuscat S.A.O.G.
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