Moody's downgrades Omani banks as operating environment ‘weakens’

Moody's Investors Service has downgraded the long-term local and foreign currency deposit ratings of four Omani banks, namely, Bank Muscat, HSBC Bank Oman, Bank Dhofar and National Bank of Oman, the ratings agency said in a statement.

Also read: Moody's cuts Oman's rating amid 'limited' fiscal reforms

At the same time, Moody's affirmed the long-term local currency deposit rating of three banks, namely, Bank Sohar, Oman Arab Bank and Bank Nizwa.

Moody's has also downgraded the long-term foreign currency deposit ratings of Sohar International and OAB, while it has affirmed the long-term foreign currency deposit rating of Bank Nizwa, the statement added.

“These actions, which follow Moody's downgrade of the Government of Oman issuer rating to Ba1 with a negative outlook from Baa3 with a negative outlook, reflect the Omani government's weakening capacity to support the local banks as well as the weakening operating environment in the country,” the statement noted.