S&P upgrades Commercial Bank rating to 'A-'; outlook stable

S&P Global Ratings has raised its long-term issuer credit rating on the Commercial Bank to 'A-' from 'BBB+' and affirmed the 'A-2' short-term rating. The outlook is stable.According to S&P, “We believe that Commercial Bank's stand-alone credit worthiness has strengthened, given improved asset quality and lower exposure to high-risk sectors and geographies.”The ratings agency also highlighted the key role of the Qatari authorities in providing support to the bank, as stated in the report: “The government's plan to reduce its debt ratios implies lower lending opportunities for the banking system. At the same time, we believe that system-wide asset-quality indicators will remain stable at contained levels over 2023.”Commercial Bank Group Chief Executive Officer Joseph Abraham said, “This upgrade in Commercial Bank’s rating by S&P reflects the bank’s strategy in continuing to reduce risks on its balance sheet while maintaining strong capitalisation. For Commercial Bank, S&P’s stable outlook reflects the bank’s improved quality of earnings generation, strong capital and liquidity and the focused execution of our five-year strategic plan.” Commercial Bank is also rated by Moody’s at ‘A2/P-1’ and Fitch at ‘A-/F2’, both with stable outlook.