Bank Muscat's credit rating upgraded

Fitch Ratings affirmed Bank Muscat’s long-term credit rating at BB+ with a stable outlook tied to the strong profile of Oman’s economy.

The agency reported favourable economic conditions for Omani banks, bolstered by higher oil prices in 2024.

Fitch said Bank Muscat's viability rating is constrained by Oman’s sovereign rating due to the bank’s substantial exposure to the public and government sectors under its local business model.

The rating reflects the bank's prominent position in Oman, giving it access to high-quality borrowers, robust funding from government related entities, asset quality stability and strong capital and liquidity levels.

Bank Muscat dominates the market in Oman, enhancing its pricing power and access to low cost funding sources, which supports its net interest margin and cautious growth, driven by improved net interest margin and diversified revenue streams.

Last month, S&P Global also upgraded Bank Muscat’s long-term and short-term credit ratings, similarly attributing the bank's favourable performance to Oman’s positive business environment.