Bank Muscat's credit rating upgraded with stable outlook

The global agency Standard & Poor's (S&P) has upgraded Bank Muscat’s long- and short-term credit ratings to BBB- and A-3 respectively with a stable outlook.

The agency said Bank Muscat's credit profile has benefited from a more positive operating environment and remains the largest bank in Oman, holding approximately one-third of the market share in the first half of this year.

The agency expects the Bank to maintain strong asset quality indicators with non-performing loans expected to remain low over the next 12 to 24 months.

S&P also expects Bank Muscat to sustain a solid capital base, with a risk-adjusted capital ratio of below 11 percent in the same period, considering moderate growth in both credit and profits.

The Bank is anticipated to retain its strong market position, adequate capital levels and stable asset quality indicators.

The agency indicated that another positive upgrade for the bank would require an upgrade of Oman’s sovereign rating, along with substantial reductions in the bank’s stage two loans to align with peer levels, while maintaining stable capital.