Moody's affirms QNB's deposit rating at Aa3

 30 May 2017 - 23:00

Moody's  affirms QNB's deposit  rating at Aa3

The Peninsula

Moody's Investors Service, (Moody's) has affirmed, and changed the outlook to stable from negative, on the  Aa3 long-term deposit rating of Qatar National Bank ('QNB').
The ratings and rating inputs that are unaffected by yesterday's action are  Qatar National Bank's baa1 baseline credit assessment (BCA), baa1 adjusted BCA, Prime-1 short-term deposit ratings and QNB Finance Ltd (P)A2 Backed Subordinate MTN rating.
The key driver for the affirmation of the Aa3 deposit rating is based on Moody's view of a continued very high likelihood of Qatari government support.
This continues to translate into four notches of uplift for the bank's long-term deposit  ratings, from its baa1 BCA. Moody's support assumptions take into account the capacity and willingness of a government to provide support to the bank in case of need. Moody's expects the Qatari government's willingness to provide support to QNB will remain 'very high' given that QNB) is the country's largest bank, with around 45 percent market share in the domestic system.