QIIB’s Long-Term IDR of 'A' Placed on Rating Watch Negative By Fitch Ratings

Qatar International Islamic Bank (QIIB)’s Long-Term Issuer Default Rating (IDR) of 'A' has been placed on Rating Watch Negative (RWN) by Fitch Ratings (Fitch). The Short-Term IDR and the Support Rating Floor (SRF) were also placed on RWN. Additionally, Fitch affirmed QIIB's Viability Rating (VR) at 'bb+'.

Ratings Rationale

As per Fitch, the RWN represents the Qatari banking sector's growing reliance on external finance, as well as the country's recent rapid asset expansion, which may have reduced the sovereign's ability to maintain the system in the event of a need. It notes that QIIB's IDRs, Support Rating (SR) and SRF continue to reflect an extremely high probability of support from the Qatar government for domestic banks, if needed.

Fitch cautio...