Qatar Economic Review 2006(September) - QNB

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QNB RatingsQNB is the highest rated bank in Qatar with the widest coverage and currently has a rating from Moody’s,Standard and Poor’s, Capital Intelligence, and Fitch.Table 1CapitalIntelligenceCredit ratingsfor QNBLong-TermForeign Currency Financial Strength Support Rating OutlookShort-termA+ A1 A+ 1 StableSource: Capital Intelligence.In September 2006, Capital Intelligence raised the Financial Strength Rating of QNB to A+, from A.Earlier, on August 25th, 2005 Capital Intelligence had raised QNB’s long-term foreign currency ratingto A+, from A- and short-term foreign currency rating to A1 from A2. This upgrade was following theAugust 9th Financial Strength Rating (FSR) upgrade to A, from A-. Capital Intelligence mentioned thatthe upgrade reflects the Bank’s strong fundamentals and its leading position in a fast growing economy.Capital Intelligence currently gives QNB the highest rating in Qatar, with a long-term foreign currencydeposit rating of ‘A+‘, and a support rating of ‘1’ (Table 1).Table 2:Moody’sCredit ratingsfor QNBLong-TermBank Deposits Financial Strength OutlookShort-TermA1 P-1 C- StableSource: Moody’s.On October 11th, 2005 Moody’s upgraded QNB’s long-term foreign currency bank deposit ratings bytwo notches to A1 from A3, and QNB’s short-term foreign currency bank deposit ratings to P-1 fromP-2 (Table 2). Moody’s mentioned that the ratings were set at the country ceiling and that the actionrecognises the bank’s importance within the domestic banking system.Table 3:Standard andPoor’s Creditratings forQNBLong-TermBank Credit and DepositsShort-termOutlookA A1 StableSource: Standard and Poor’s.On October 10th, 2005 Standard and Poor’s in its first interactive rating on a bank in Qatar assigneda long-term counterparty bank credit and deposit rating of ‘A’ and a short-term rating of ‘A1’ (Table 3).Standard and Poor’s stated that the ratings reflect QNB’s dominant position in Qatar, strong incomegenerated by high-quality earning assets, and solid liquidity and capital positions. Standard and Poor’salso made note of QNB’s importance to the economy.Table 4:Fitch Creditratings forQNBLong-Term Short-Term Support IndividualA- F2 1 B/CSource: Fitch.On February 7th, 2005 Fitch upgraded QNB’s Support Rating to ‘1’ from ‘2’ (Table 4), affirming allother ratings. Fitch mentioned that the upgrade in the support ratings reflects the support by the Qatariauthorities and the other ratings reflect the bank’s consistent profitability, sound asset quality, goodcapitalisation and adequate liquidity.QNB RATINGS 54
1APPENDIXQatar Statistical SummaryThe Economy(QR Million)2001 2002 2003 2004 2005GDP (nominal) 63,840 70,484 85,663 115,512 154,564% change -1.2% 10.4% 21.5% 34.8% 33.8%Inflation Rate 1.5% 0.2% 2.3% 6.8% 8.8%Exchange Rate ($:QR) 3.64 3.64 3.64 3.64 3.64Total Exports (fob) 39,571 39,960 48,712 68,013 93,774Total Imports (fob) (12,323) (13,287) (15,865) (19,691) (32,992)Balance of Trade 27,248 26,673 32,847 48,322 60,782Current Account Balance 15,114 13,919 20,944 27,489 38,995Capital & Finance Account Balance (5,558) (7,408) (5,544) (13,194) (22,872)Overall Balance 9,556 6,511 15,400 14,295 16,1232Public Finance(QR Million)2002/03Actual2003/04Actual2004/05Actual2005/06Prelim.2006/07BudgetGovernment Revenue 29,453 30,716 55,232 61,531 56,900Government Expenditure 23,453 27,016 35,608 46,817 54,600Budget Surplus/Deficit 6,000 3,700 19,624 14,714 2,300Budget Surplus/Deficit as % of GDP 8.4 4.3 17.1 9.6 --3Oil and Gas 2001 2002 2003 2004 2005Oil production (000 bpd) 681 640 714 759 779Price per barrel ($) 23.6 24.5 27.9 35.2 51.7LNG Exports (mtpa) 12.8 13.5 14.4 20.3 22.9APPENDIX 55
Page 1:
HEAD OFFICEQatar National Bank SAQ,
Page 5 and 6: Sovereign Ratings: State of QatarQa
Page 8 and 9: Economically Active Population by G
Page 10 and 11: 2. The Economy of QatarQatar’s ec
Page 12 and 13: The Non-Oil and Gas SectorThe Non-O
Page 14 and 15: 3.Key Economic Sectors3.1 The Oil S
Page 16 and 17: Blocks 1, 3, 4, 7 and 14 (Offshore)
Page 18 and 19: 3.2 The Natural Gas SectorQatar’s
Page 20 and 21: 2. Qatar Liquefied Natural Gas Comp
Page 22 and 23: QatargasTable 3.10LNG Summary (Mtpa
Page 24 and 25: Al Khaleej Gas ProjectA Development
Page 26 and 27: Qatar Steel Company (QASCO)QASCO is
Page 28 and 29: Ras Laffan Ethylene Cracker (RLEC)T
Page 30 and 31: The other leading educational insti
Page 32 and 33: Table 4.2Weightage on the ConsumerP
Page 34 and 35: Qatar’s principal export items in
Page 36 and 37: In 2005, Qatar’s main import trad
Page 38 and 39: 6. Monetary PolicyThe monetary mana
Page 40 and 41: 7. Banking SectorThe Qatari banking
Page 42 and 43: TABLE 7.2Balance Sheets of Qatari B
Page 44 and 45: The Services sector recorded a grow
Page 46: 2005/06 BudgetPreliminary data on g
Page 49 and 50: The DSM market capitalisation decli
Page 51 and 52: 11. Investment IncentivesQatar welc
Page 53: 12. Qatar National BankQatar Nation
Page 58: QNB Branches and OfficesHead Office
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Qatar Economic Review 2006(September) - QNB

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