01 December 2011
MUSCAT: Moody's Investors Service reaffirmed global scale rating to Al Omaniya Financial Services. The company has been assigned Ba3 long-term local and foreign currency issuer ratings. The rating carries stable outlook.
Moody's notes that Al Omaniya Financial ratings reflect the company's good profitability, asset quality and capitalisation, its niche position as one of the leading companies in the relatively small Omani leasing sector and the conservative risk appetite and basic yet effective risk management procedures.
Moody's further notes the rating are constrained by Al Omaniya Financial's reliance on wholesale funding as well as its monoline status and increased competitive pressure on its franchise.
Moody's further notes that with total asset size of RO142 million ($369 million) as at end of June, Al Omaniya Financial is the largest non-banking financial company (NBFC) in Oman with an estimated market share of around 25 per cent.
Al Omaniya Financial operates in a highly competitive market and competes directly with the five other specialised leasing companies, but also with largest domestic banks that offers similar products.
A specialised lender
Although the company competes directly with the large Omani banks, it continues to leverage its expertise developed over 14 years of operations as a specialised lender and its partnership with all major suppliers of capital goods and automobiles in Oman for which it is usually the lender of choice for their customers.
Moody's further notes that capitalisation remains strong and is one of the key factors supporting Al Omaniya Financial ratings. In terms of asset quality, the firm maintains a relatively low number of non performing assets (NPAs) at 1.8 per cent of total leased assets as at end of June 2011.
Provisioning coverage stood at a high 243 per cent at end June 2011, providing strong protection to the company's equity.
Aftab Patel, chief executive of Al Omaniya Financial Services stated that it was indeed gratifying to note Moody's reaffirmation of company's global scale ratings.
Al Omaniya Financial is the only NBFC rated on the global scale and is the largest NBFC in the country. The company has performed well in the year 2011 and is expected to maintain its dividend earnings.
The company has achieved an asset size of RO148.7 million.
And net profit of RO3.2 million as of September 30. Further, Al Omaniya Financial expects to grow significantly in profitability, and business volume in 2011. It is not only the largest in asset size but also highest in net worth, largest in market capitalisation, lowest in NPAs and highest in profitability amongst all NBFCs in the country.
In the first quarter of 2012, the company proposes to issue compulsorily convertible bonds of RO10 million to its existing shareholders, which will be converted into equity shares within a span of five years, converting 20 per cent every year. This issuance will help the company meet the Central Bank Oman capital requirements as well as fund future growth and maintain capitalisation at good levels.
MUSCAT: Moody's Investors Service reaffirmed global scale rating to Al Omaniya Financial Services. The company has been assigned Ba3 long-term local and foreign currency issuer ratings. The rating carries stable outlook.
Moody's notes that Al Omaniya Financial ratings reflect the company's good profitability, asset quality and capitalisation, its niche position as one of the leading companies in the relatively small Omani leasing sector and the conservative risk appetite and basic yet effective risk management procedures.
Moody's further notes the rating are constrained by Al Omaniya Financial's reliance on wholesale funding as well as its monoline status and increased competitive pressure on its franchise.
Moody's further notes that with total asset size of RO142 million ($369 million) as at end of June, Al Omaniya Financial is the largest non-banking financial company (NBFC) in Oman with an estimated market share of around 25 per cent.
Al Omaniya Financial operates in a highly competitive market and competes directly with the five other specialised leasing companies, but also with largest domestic banks that offers similar products.
A specialised lender
Although the company competes directly with the large Omani banks, it continues to leverage its expertise developed over 14 years of operations as a specialised lender and its partnership with all major suppliers of capital goods and automobiles in Oman for which it is usually the lender of choice for their customers.
Moody's further notes that capitalisation remains strong and is one of the key factors supporting Al Omaniya Financial ratings. In terms of asset quality, the firm maintains a relatively low number of non performing assets (NPAs) at 1.8 per cent of total leased assets as at end of June 2011.
Provisioning coverage stood at a high 243 per cent at end June 2011, providing strong protection to the company's equity.
Aftab Patel, chief executive of Al Omaniya Financial Services stated that it was indeed gratifying to note Moody's reaffirmation of company's global scale ratings.
Al Omaniya Financial is the only NBFC rated on the global scale and is the largest NBFC in the country. The company has performed well in the year 2011 and is expected to maintain its dividend earnings.
The company has achieved an asset size of RO148.7 million.
And net profit of RO3.2 million as of September 30. Further, Al Omaniya Financial expects to grow significantly in profitability, and business volume in 2011. It is not only the largest in asset size but also highest in net worth, largest in market capitalisation, lowest in NPAs and highest in profitability amongst all NBFCs in the country.
In the first quarter of 2012, the company proposes to issue compulsorily convertible bonds of RO10 million to its existing shareholders, which will be converted into equity shares within a span of five years, converting 20 per cent every year. This issuance will help the company meet the Central Bank Oman capital requirements as well as fund future growth and maintain capitalisation at good levels.
© Times of Oman 2011
