S&P shifts Commercial Bank of Qatar view to positive

S&P said it revised the Commercial Bank of Qatar’s outlook to positive from stable and affirmed its BBB+ rating.

“Over the past few years, CBQ has de-risked its balance sheet and strengthened its risk management. As a result, the bank's asset quality has improved with nonperforming loans and Stage 2 loans dropping to 4.3% and 16% of total loans in 2020 respectively, compared with 5.5% and 27% at year-end 2018. CBQ has also increased its exposure to the government of Qatar and its related entities to about 17% at year-end 2020 with the objective of reaching 25% in the next five years,” S&P said in a press release.

The positive outlook reflects the view that CBQ will continue cutting risks on its balance sheet while maintaining its strong capitalization, the agency said.

© 2015 Prospect News.
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