Moody's on Sept. 12 lowered Oman-based Bank Dhofar SAOG's baseline and adjusted baseline credit assessment to "ba3" from "ba2."
The downgrade is driven by the bank's deteriorating asset quality and higher provisions, which negatively affected profitability, in the context of the country's weakening operating environment.
At the same time, the agency affirmed the bank's long-term local- and foreign-currency bank deposit ratings at Ba1/Ba2, with a negative outlook; short-term bank deposit ratings at Not Prime; long- and short-term counterparty risk assessments at Ba1(cr)/Not Prime(cr); and long- and short-term counterparty risk ratings at Ba1/Not Prime.
