Doha, June 15 (QNA) - Moody's Ratings has affirmed the long-term issuer rating of Qatar International Islamic Bank (QIIB) at A2, maintaining a stable outlook and highlighting the lender's financial resilience and ability to withstand evolving operational challenges.

In its latest report, the credit rating agency said the affirmation reflects the bank's strong standalone financial profile, supported by solid capital adequacy, robust liquidity levels and prudent risk management practices.

Moody's noted that the bank's tangible common equity ratio to risk-weighted assets stood at a strong 16 percent at the end of March 2026. It also pointed to a very high loan-loss reserve coverage ratio of 214 percent, which provides a substantial buffer against potential deterioration in asset quality.

The agency further praised the bank's operational efficiency, describing it as a key factor underpinning medium-term profitability. The cost-to-income ratio remained at a highly competitive 21 percent, while the return on tangible assets was close to 2 percent.

According to Moody's, the bank also benefits from a strong funding profile based primarily on a stable domestic retail deposit base, helping to reduce withdrawal and refinancing risks.

The stable outlook, the agency said, balances expectations of continued profitability recovery and the maintenance of healthy capital and liquidity buffers against temporary pressures arising from regional operational challenges.

Moody's added that the bank's rating is further supported by the very high likelihood of government support if required. This assessment reflects the strong creditworthiness of Qatar's sovereign, which is rated AA2 with a stable outlook, as well as the government's established record of supporting the banking sector when necessary.

Commenting on the rating affirmation, Dr. Abdulbasit Al Shaibei, Chief Executive Officer of QIIB, said the decision represented renewed recognition of the institution's financial strength amid current economic conditions and emerging challenges.

"This affirmation, despite prevailing uncertainties, is a testament to the resilience of our financial position and reflects the success of our conservative and effective strategy in risk management, while maintaining strong and sustainable liquidity and capital adequacy levels," he said.

Dr Al Shaibei added that the bank's confidence remains closely linked to the strength of the Qatari economy and the country's highly rated sovereign profile, which continues to provide a supportive operating environment for the financial sector.

The rating affirmation underscores the continued strength of Qatar's banking industry, which has remained well-capitalized and resilient despite regional and global economic uncertainties. (QNA)