Latest news with #CreditRating
Zawya
18 hours ago
- Business
- Zawya
Moody's upgrades Bank Nizwa to investment grade (Baa3), reflecting robust financial strength and strategic growth
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.
Arab News
2 days ago
- Business
- Arab News
Saudi regulator eases approval process for rated debt issues
RIYADH: Public debt issuers in Saudi Arabia can now expect faster regulatory reviews if their offerings carry a credit rating, as the Kingdom moves to boost issuance and expand its fixed-income investor base. The Capital Market Authority has introduced a fast-track mechanism for public debt offering applications that agencies licensed by the regulator have rated. The incentive will remain in effect through the end of 2026, according to a press release. By encouraging issuers to obtain credit ratings, the CMA aims to increase investor participation and improve risk assessment across the market. The move comes amid Saudi Arabia's ongoing efforts to develop a more diversified and resilient financial system under Vision 2030. Strengthening the domestic capital market, particularly fixed income, is a strategic priority for the Kingdom as it seeks to reduce dependence on oil revenues, channel more private capital into economic development, and empower the private sector as a driver of growth. 'Through this measure, the CMA aims to build a more mature and stable debt instruments market with a diversified investor base and strengthened confidence among all participants,' the statement said. 'A credit rating is not merely an indicator of the issuer's creditworthiness; rather, it serves as an effective tool enabling investors to make well-informed investment decisions,' it added. While Saudi Arabia's equity market has seen strong growth in recent years, the debt segment remains relatively underdeveloped compared to global peers. Enhancing transparency and risk differentiation through credit ratings is viewed as key to unlocking greater institutional and foreign investor participation, which in turn supports more competitive pricing and long-term market stability. The CMA has already implemented a series of structural reforms to mature the market, including expanding the qualified investor base, enabling foreign ownership of debt securities, and promoting the issuance of sukuk and conventional bonds. These reforms are designed to improve capital access for issuers while giving investors better tools to assess risk and return. The latest measure builds on these initiatives by directly linking faster regulatory review to the presence of a third-party credit opinion. The regulator expects the move to stimulate a higher volume of rated debt issuances, accelerate application processing, and strengthen market confidence, ultimately fostering a more dynamic and diversified capital market ecosystem.
Zawya
2 days ago
- Business
- Zawya
Moody's lifts Turkey's rating to 'Ba3' on improving policy, easing inflation
Credit ratings agency Moody's on Friday upgraded Turkey's rating to "Ba3" from "B1," citing improving monetary policy credibility, easing inflation and reduced economic imbalances. The outlook was revised to stable from positive, reflecting a balance between ongoing policy gains and lingering political and external risks. The lift in ratings comes a day after Turkey's central bank cut its benchmark interest rate by a larger-than-expected 300 basis points to 43%, resuming an easing cycle that had been disrupted earlier this year by political turmoil. Market turbulence in March, triggered by the detention of Istanbul Mayor Ekrem Imamoglu, President Tayyip Erdogan's main political rival, had prompted an emergency rate hike and drained foreign currency reserves. "The upgrade reflects the strengthening track record of effective policymaking, more specifically in the central bank's adherence to monetary policy that durably eases inflationary pressures," Moody's said in a statement. Since Erdogan's re-election in 2023, Turkish authorities have shifted back to orthodox economic policies, sharply raising interest rates and curbing credit growth to rein in inflation and stabilize the lira. Inflation slowed to 35% in June 2025, down from 72% a year earlier, according to official data. Finance Minister Mehmet Simsek said in May that the country's economic transformation was "on track" and that Turkey was prepared to live with slower growth if it meant long-term stability. "Growth is slower but we can live with that," he said at the annual meeting of the European Bank for Reconstruction and Development. The Ba3 rating remains below investment grade but signals improved creditworthiness. Fitch on Friday affirmed its ratings on Turkey at 'BB-' with a stable outlook.
Argaam
2 days ago
- Business
- Argaam
CMA to prioritize rated debt offerings under new incentive plan
The Capital Market Authority (CMA) approved a new incentive to fast-track public debt offering applications for issuers or instruments rated by a CMA-licensed credit agency, with the measure effective through end-2026. The CMA said the move aims to boost efficiency and transparency in the debt market, strengthen its role in business financing and growth, and encourage rated issuers to widen investor participation and deepen the market. The initiative supports the CMA's broader strategy to deepen the Saudi capital market, enhance transparency and appeal, and aligns with Vision 2030 goals to diversify funding sources and boost financial sustainability. The CMA stressed that credit ratings are more than creditworthiness indicators, they are essential tools for enabling investors to make informed decisions based on clearer risk assessments. By fast-tracking rated offerings, the CMA aims to develop a more stable and mature debt market, broaden the investor base, strengthen market confidence, and support better risk assessment of listed instruments. The CMA expects the move to ease corporate access to debt markets, boost issuance volume, and enhance offering appeal, noting that credit ratings help financial advisors market deals, particularly to institutional and qualified investors. Credit ratings provide forward-looking assessments of credit risk, indicating default likelihood and potential creditor losses. Issuers use them to demonstrate credit strength and attract investors, while investors rely on them for credit analysis and debt evaluation.
Yahoo
4 days ago
- Business
- Yahoo
AM Best Affirms Credit Ratings of Dhipaya Insurance Public Company Limited
SINGAPORE, July 25, 2025--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" (Excellent) of Dhipaya Insurance Public Company Limited (Dhipaya) (Thailand). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect Dhipaya's balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. Dhipaya's balance sheet strength assessment is viewed as strong, underpinned by its risk-adjusted capitalisation, which is expected to remain at the strongest level over the medium term, as measured by Best's Capital Adequacy Ratio (BCAR). The company benefits from strong financial flexibility as part of Dhipaya Group Holdings Public Company Limited (Dhipaya Group), which is a listed insurance holding company with access to capital markets. The company has a moderate risk investment strategy, given its notable allocation to equities and mutual funds. In addition, the company has a high reliance on reinsurance, although this is mitigated partially by the typically high credit quality of its reinsurance counterparties. The balance sheet strength assessment also factors in a neutral holding company impact arising from its ultimate ownership by Dhipaya Group. Dhipaya's operating performance is assessed as strong, with a five-year average return-on-equity ratio of 19.4% and combined ratio of 86.0% (2020-2024). In 2024, the company's underwriting performance remained robust, supported by good loss experience in its miscellaneous and fire insurance, and favourable reinsurance commission income despite flood losses and higher claims experience in personal accident and health insurance. In addition, disciplined underwriting and pricing strategies are expected to support prospective performance. Dhipaya's investment income, which comprises interest and dividend income, continues to remain supportive of overall earnings. AM Best assesses Dhipaya's business profile as neutral. The company has a strong presence in Thailand's non-life market, ranking second with a market share of 11.2% in 2024, based on direct premium written. Dhipaya holds a dominant market position in several major segments, including fire insurance. The company's business profile also benefits from its strong shareholder support through business referrals and access to extensive countrywide distribution networks. Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Sin Yee Chuah, CFA Senior Financial Analyst +65 6303 5022 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Chris Lim, FCII, CFA Associate Director, Analytics +65 6303 5018 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Sign in to access your portfolio
