The New York-based rating agency also declined the bank's baseline credit assessment (BCA) to ba1 from baa3, according to a report issued late Monday.
In the same vein, the long-term Counterparty Risk (CR) Assessment of Qatar’s 3rd largest conventional bank has been declined to A2 from A3, Moody’s said.
The drop of Doha Bank's long-term deposit ratings reflects the drop of the bank's BCA by 1 notch, it added.
“Doha Bank’s long-term deposit ratings continue to benefit from four notches of uplift reflecting Moody's view of a very high likelihood of government support if needed,” the New York-based rating agency said.
On the other hand, the downgrade of CBQ's BCA reflects pressures on the bank's deteriorating asset quality and capital adequacy.
“Capital adequacy has also been declining, driven by the impact of the introduction of IFRS 9 and pressured profitability owning to higher provisions and lower margins,” the report showed.
It is worth noting that Doha Bank’s profits rose 4.7% to QAR 381 million for the first quarter of 2018, compared to QAR 364 million in Q1-17.
For the full-year 2017, the bank’s profits jumped 5.3% to QAR 1.11 billion, compared to QAR 1.05 billion in the prior year.
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