TEXT-Fitch assigns Qatar Islamic Bank programme final rating
(The following statement was released by the rating agency)
Oct 2 - Fitch Ratings has assigned Qatar Islamic Bank's
USD1.5bn trust certificate issuance programme a final rating of 'A'. The issuing entity under the programme is QIB Sukuk Ltd (QIBSL).
The assignment of the final ratings follows the receipt of final documents conforming to the information previously received. The final ratings are the same as the expected rating assigned on 26 September 2012.
The ratings are assigned to the programme and not to the certificates issued under the programme. There is no assurance that certificates issued under the programme will be assigned a rating, or that the rating assigned to a specific issue under the programme will be the same rating as the rating assigned to the programme.
QIBSL is a special purpose vehicle (SPV), incorporated in the Cayman Islands solely to act as the issuer of the certificates (Sukuk) and trustee for the holders of the certificates.
The programme's rating is based on QIB's Long-term Issuer Default Rating ('A'/Stable) as Fitch views the programme as a QIB originator-backed structure. The originator backing is based on: 1) QIB's obligations under the documentation rank pari passu with QIB's other unsecured obligations; 2) QIB's undertaking to purchase the relevant Sukuk assets on the scheduled or any earlier dissolution dates from QIBSL and to liquidate the relevant mudaraba assets; and 3) On any periodic distribution date, if the returns generated from the Sukuk assets are insufficient to cover the periodic distribution payments due, QIB may pay further amounts to the SPV to remedy such shortfall via a liquidity facility. Fitch views the provision of a liquidity facility as an obligation of QIB as failure to provide liquidity if required would lead to payment default under the certificates and in the agency's view this would also constitute an event of default for QIB.
QIB is the third-largest bank in Qatar by assets and the leading Islamic bank, accounting for 8.5% of total banking assets and 36% of total Islamic banking assets at end-H112. The bank has a strong franchise in Qatar and close links with the Qatari government. The Qatar Investment Authority is QIB's largest shareholder (16.7%); the balance is listed on the Qatar exchange.
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The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable criteria, 'Global Financial Institutions Rating Criteria' dated 15 August 2012, and 'Rating Sukuk' dated 16 August 2012 are available at
. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria Rating Sukuk (New York Ratings Team)