Commercial Bank of Qatar Outlook To Positive On Capital Increase; 'A-/A-2' Ratings Affirmed

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PARIS (Standard & Poor's) July 28, 2008--Standard & Poor's Ratings Services said today that it revised its outlook on Commercial Bank of Qatar (CBQ)Commercial Bank of Qatar (CBQ) to positive from stable. At the same time, the 'A-/A-2' counterparty credit ratings on the bank were affirmed.

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The ratings reflect CBQCBQ's stellar financial performance, strong asset quality, and widening geographic diversification. Standard & Poor's considers CBQCBQ to be a systemically important bank in the State of Qatar (AA-/Stable/A-1+), which we classify as interventionist toward its banking system. The long-term rating on CBQCBQ is consequently one notch above the bank's stand-alone creditworthiness, integrating our expectation of the strong likelihood of government support in case of need. The ratings are constrained by concentration risks in a narrow domestic market, rapid loan growth untested by a sharp economic downturn, and the short track record of the bank's overseas expansion strategy.

The second-largest bank in Qatar, CBQCBQ is a midsize player by regional standards, with assets totaling Qatari riyal (QAR) 53.8 billion (USD14.8 billion) at midyear 2008.

CBQCBQ

We would raise the ratings if CBQCBQ delivers a longer track record of successful international operations through its existing affiliates, and reduces concentration risk while sustaining its strong financial performance, asset quality, and capitalization. The ratings or the outlook could come under downward pressure, however, if asset quality deteriorates significantly, financial performance declines, or unexpected risks at the bank's affiliates emerge.

Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 8,500 employees, including wholly owned affiliates, located in 23 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com.

Analyst Contacts:
Mohamed Damak, Paris
Emmanuel Volland, Paris
Financial Institutions Ratings Europe

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© Press Release 2008