The Banking Executive Magazine- June 2026 Issue

Moody Moody’s Affirms Ratings OF EIGHT QATARI BANKS, MAINTAINS STABLE OUTLOOK The long-term local and foreign cur- rency deposit and issuer ratings of eight Qatari banks have been af- firmed by Moody’s Ratings (Moody’s) while maintaining stable outlooks across the sector. The agency said the ratings are sup- ported by the banks’ strong capital and liquidity positions, as well as Qatar’s robust macroeconomic fun- damentals, including substantial hy- drocarbon reserves, high income levels, and a strong sovereign bal- ance sheet. “Moody’s Ratings (Moody’s) affirmed the long-term local and foreign cur- rency deposit and issuer ratings, where applicable, of eight Qatari banks: Qatar National Bank (QNB), Commercial Bank, Doha Bank, Qatar Islamic Bank, Dukhan Bank, AlRayan Bank, Qatar International Is- lamic Bank, and Ahli Bank, it noted. “We have maintained the stable out- look on the long-term ratings of the eight Qatari banks. At the same time, we have affirmed the Baseline Credit Assessments (BCAs), Adjusted BCAs, Counterparty Risk Ratings (CRR) and Counterparty Risk (CR) Assessments of all banks. “We have affirmed the ratings of Qatari banks and maintained stable outlooks on the long-term deposit and issuer ratings, where applicable. At the standalone level, the banks’ BCAs remain supported by strong capital and liquidity buffers,” it added . At the system level, the affirmation is supported by Qatar’s strong macro profile, reflecting vast hydrocarbon reserves, very high income levels, and a robust sovereign balance sheet, all of which provide substan- tial shock-absorption capacity against the disruption of hydrocar- bon exports. The agency stated, “We expect over- all real GDP to contract by around 14% in 2026, reflecting the effective halt in hydrocarbon trade flows for much of this year. However, we ex- pect the impact on credit metrics to be transitory under our central sce- nario assumptions.” From 2027 onward, strengthening economic conditions, supported by higher LNG production capacity and elevated energy prices, will underpin stronger fiscal performance and a gradual recovery in non oil eco- nomic activity. The report further noted that Qatari banks ratings continue to incorporate a very high likelihood of government support, based on the government of Qatar’s strong capacity and willing- ness to support the banking system. This is underpinned by its Aa2 (sta- ble) sovereign rating), significant footprint in the domestic economy and banking sector, and a demon- strated track record of pre-emptive support during periods of financial stress. the BANKING EXECUTIVE 16 ISSUE 210 JUNE 2026