Alizz Islamic Bank's Credit Rating Upgraded to 'omAA+'

Alizz Islamic Bank, a leading Oman-based bank, has received a significant boost to its credit rating, with Capital Intelligence Ratings upgrading its Long-Term ratings on the Oman National Scale to 'omAA+' from 'omAAA' with a stable outlook. This upgrade is a testament to the bank's improved capital ratios, bolstered by a recent additional Tier 1 Sukuk issuance, which has enhanced its growth potential and finances absorption capacity. The bank's sound financial metrics, including financing asset quality, liquidity, and improving profitability, have also been recognized by the rating agency.

Key Takeaways:

Alizz Islamic Bank's Long-Term ratings on the Oman National Scale have been upgraded to 'omAA+' from 'omAAA' with a stable outlook.
The upgrade is due to improved capital ratios, bolstered by a recent additional Tier 1 Sukuk issuance, which enhances the bank's growth potential and finances absorption capacity.
The bank's credit rating is based on sound financial metrics, including financing asset quality, liquidity, and improving profitability.
The bank has reported higher earnings in 2024, primarily driven by net financing income and an improvement in the cost-to-income ratio.
Strengthening of the fiscal balance and improved macroeconomic indicators have resulted in an improvement of the outlook for Oman's sovereign rating, which will have a positive effect on the banking sector.
Alizz Islamic Bank aims to deliver sustainable results for its shareholders based on its well-defined strategy.

Statistics:

Alizz Islamic Bank's Long-Term rating has been upgraded to 'omAA+' from 'omAAA'.
The bank's capital ratios have improved, with a recent additional Tier 1 Sukuk issuance enhancing its growth potential and finances absorption capacity.
The bank's financing asset quality is sound, with a strong liquidity position and improving profitability.
Total earnings in 2024 were driven by net financing income, which constituted 60% of total revenue.
The cost-to-income ratio improved from 70% to 65% in 2024.

Sources:

Alizz Islamic Bank - Original Press Release