Fitch Ratings on March 14 downgraded Commercial Bank (PSQC)'s viability rating to "bb+" from "bbb-" and affirmed the Qatari lender's long-term issuer default rating at A, with a stable outlook.

The rating agency said the downgrade reflects the bank's continued high impaired loans origination from its above-peer-average exposure to Qatar's real estate and contracting sector, as well as the lender's tight capital ratios which Fitch said are not commensurate with its risk profile and are not supported by sufficient internal capital generation.

Fitch also affirmed Commercial Bank's short-term issuer default rating at F1, its support rating at 1 and its support rating floor at A.