Mubasher: Moody's Investors Service upgraded Masraf Al Rayan's long term issuer ratings to A1 from A2 and counterparty risk (CR) assessment to Aa3(cr) from A1(cr), according to a statement.
“The baseline credit assessment (BCA) and adjusted BCA were raised to baa2 from baa3,” the statement said, adding that the rating agency affirmed the prime-1 short term issuer ratings and prime-1(cr) short term CR assessment.
The outlook on the long-term ratings has changed to stable from positive.
The upgrade of MAR's ratings reflects continued business diversification, consistently strong asset quality performance, and strong profitability and capital metrics.
The bank benefits from its close ties to the Qatari Government and related entities through key management relationships.
The agency’s assessment also takes into account the softening liquidity and funding position of MAR, the statement said, adding that the bank's stock of liquid assets declined to 24% of the total assets as of June 2016, down from a 28% as of December 2012 and net financings-to-deposits ratio has increased to around 111% as of June 2016.
