Moody's upgrades Bank Nizwa to investment grade (Baa3), reflecting robust financial strength and strategic growth

Zawya

29-07-2025

Muscat: In a significant development reflecting Bank Nizwa's – the leading and most trusted Islamic bank in the Sultanate of Oman – strategic and sustainable growth, Moody's Investors Service announced significant upgrades to its long-term foreign and local currency deposit ratings, which have been elevated to an investment grade Baa3 from Ba1 with stable outlook. Concurrently, the bank's Baseline Credit Assessment (BCA) and Adjusted BCA have also seen a robust improvement.
These prestigious upgrades reflect Bank Nizwa's unwavering commitment to financial excellence and its strong positioning within the Sultanate's evolving economic landscape. The enhancements directly reflect the positive momentum driven by improved operating conditions, which are continually strengthening the bank's financial performance, including capital buffers.
Mr. Khaled Al Kayed, Chief Executive Officer of Bank Nizwa, commented, 'We extend our sincere gratitude to our shareholders, customers, and the official authorities – including the Central Bank of Oman (CBO), Ministry of Finance and Debt Management Office – for their continued support and unwavering commitment to financial discipline and strategic oversight. Their efforts have contributed to creating a conducive environment for the growth and prosperity of financial institutions in the Sultanate of Oman. This rating stands as a testament to Bank Nizwa's operational resilience and reflects the deep confidence placed in us by our shareholders, customers, and partners. It also aligns with the aspirations of Oman Vision 2040, which lays a strong foundation for diversified economic growth, robust fiscal sustainability, and an Islamic finance sector capable of contributing meaningfully to a progressive and resilient future.'
He added, 'As the nation's first Islamic bank, we view this upgrade as a strong affirmation of the growing relevance of Sharia-compliant finance as a catalyst for national stability, financial inclusion, and enduring value creation. A rating action of this nature strengthens market sentiment, improves long-term credibility, and enables us to channel Islamic financial solutions toward effectively creating a tangible transformational impact.'
The upgrades to Bank Nizwa's deposit ratings and Baseline Credit Assessment (BCA) reflect Moody's positive outlook on the bank's intrinsic financial strength, reaffirming its strong capital adequacy and ample liquidity. These upgrades also underscore the bank's continued ability to achieve its strategic objectives – including the expansion of its Islamic banking operations – while maintaining disciplined cost control and adhering to sustainable growth practices.
Bank Nizwa's institutional strength is reflected in the growing confidence of its customers, as the bank continues to expand its services and enhance its offerings and products. Customer deposits remain a fundamental pillar of its funding structure, and the sustainable growth in the deposit base stands as clear indication of the trust placed in the bank by both individuals and businesses.
This development also comes at a time when Oman is earning renewed global recognition for its economic reforms and fiscal discipline. Moody's recent upgrade of the Sultanate's sovereign rating to Baa3 underscores the government's efforts to foster stability, diversify the economy, and strengthen the financial sector. These national-level advancements further reinforce Bank Nizwa's ability to operate confidently and contribute meaningfully to the country's long-term goals.
Bank Nizwa remains committed to fostering innovation in Sharia-compliant financial solutions and supporting Oman's broader development aspirations. With strong fundamentals and a future-focused strategy, the bank is poised to play a vital role in shaping the next phase of Islamic banking in the region.