Moody's has downgraded the long-term local and foreign currency deposit ratings of five Omani banks: Bank Muscat (to Baa3 from Baa2), HSBC Bank Oman (to Baa3 from Baa2), Oman Arab Bank (to Ba1 from Baa3), Bank Sohar (to Ba1 from Baa3) and Bank Nizwa (to Ba2 from Ba1). At the same time, Moody's has affirmed the long-term local and foreign currency deposit ratings of Bank Dhofar (at Baa3) and National Bank of Oman (at Baa3). Moody's has maintained a negative outlook on the long-term ratings of the seven banks. Moody's has also today affirmed the Ba3 corporate family rating and the B1 issuer rating of Al Omaniya Financial Services, and maintained the negative outlook on the ratings. These actions follow Moody's downgrade of the Government of Oman's issuer rating to Baa3 with a negative outlook, from Baa2 with a negative outlook, on 16 March 2018. The sovereign action reflects Moody's expectation that i) Oman's fiscal and external metrics will continue to weaken, in part reflecting institutional and policy constraints, and ii) subdued economic growth in the country over the next few years will undermine the economy's ability to absorb shocks. (Moody’s)
 
Bank Muscat: OMR0.37 as of 19 Mar. 2018, Rating: Buy, TP: OMR0.44/share, MCap: USD2,609mn, BKMB OM/BKMB.OM
NBO: OMR0.21 as of 19 Mar. 2018, Rating: Neutral, TP: OMR0.21/share, MCap: USD840mn, NBOB OM/NBOB.OM
Bank Dhofar: OMR0.22 as of 19 Mar. 2018, Rating: Sell, TP: OMR0.18/share, MCap: USD1,319mn, BKDB OM/BKDB.OM
Bank Sohar: OMR0.16 as of 19 Mar. 2018, Rating: Sell, TP: OMR0.13/share, MCap: USD728mn, BKSB OM/BKSB.OM