Moody's Investors Service affirmed the deposit ratings of seven Omani banks and changed the outlook to stable from negative on Monday, saying the action reflected its expectation of continued improvements in the lenders’ operating environment.
Moody's said it affirmed the long-term local and foreign currency deposit ratings of Bank Muscat, HSBC Bank Oman, Bank Dhofar, National Bank of Oman, Sohar International Bank, Oman Arab Bank and Bank Nizwa.
Moody's also affirmed the Baseline Credit Assessments (BCAs) and Adjusted BCAs of the seven Omani banks.
The rating agency highlighted the affirmation of the Omani government’s Ba3 issuer rating and change in outlook to stable from negative as a basis for its action on the banks.
This, Moody’s said, reflects a large reduction in external vulnerability and government liquidity pressures, mainly as a result of significantly higher oil prices since the middle of 2020, and its expectation that oil prices will average above $60 a barrel during the next several years, increasing the likelihood that these pressures will remain contained.
Higher oil prices and continuing implementation of the government's medium-term fiscal adjustment programme will also underpin a steady decline in the direct government debt burden to the pre-pandemic level, according to Moody’s.
Oman's economy is projected to grow by 2.5 per cent this year after a contraction of 2.8 per cent in 2020, the International Monetary Fund said last month.
The affirmation of the Omani government's Ba3 ratings reflects Moody's view that Oman's structural vulnerability to potential future declines in oil demand and prices will remain high, exposing the sovereign to reversals of the expected improvements mentioned beforehand and to a sudden re-emergence of government liquidity and external vulnerability pressures, the rating agency said.
Moody's said it expects that the government's willingness to provide support to banks in case of need will remain high or very high, depending on the bank, reflecting the importance of the country's banks in the domestic financial system and the significant government shareholdings and deposits in several banks.
It noted that downward pressure on Omani banks' ratings could develop through a deterioration in the sovereign's credit profile, or a material deterioration in the banks' solvency and liquidity.
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Strait of Hormuz
Fujairah is a crucial hub for fuel storage and is just outside the Strait of Hormuz, a vital shipping route linking Middle East oil producers to markets in Asia, Europe, North America and beyond.
The strait is 33 km wide at its narrowest point, but the shipping lane is just three km wide in either direction. Almost a fifth of oil consumed across the world passes through the strait.
Iran has repeatedly threatened to close the strait, a move that would risk inviting geopolitical and economic turmoil.
Last month, Iran issued a new warning that it would block the strait, if it was prevented from using the waterway following a US decision to end exemptions from sanctions for major Iranian oil importers.
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World Series: South Africa
Women’s World Series: Australia
Gulf Men’s League: Dubai Exiles
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Gulf Vets: Jebel Ali Dragons Veterans
Gulf Women: Dubai Sports City Eagles
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UAE National Schools: Al Safa School
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International Vets: Joining Jack
AGL AWARDS
Golden Ball - best Emirati player: Khalfan Mubarak (Al Jazira)
Golden Ball - best foreign player: Igor Coronado (Sharjah)
Golden Glove - best goalkeeper: Adel Al Hosani (Sharjah)
Best Coach - the leader: Abdulaziz Al Anbari (Sharjah)
Fans' Player of the Year: Driss Fetouhi (Dibba)
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Did you know?
Brunch has been around, is some form or another, for more than a century. The word was first mentioned in print in an 1895 edition of Hunter’s Weekly, after making the rounds among university students in Britain. The article, entitled Brunch: A Plea, argued the case for a later, more sociable weekend meal. “By eliminating the need to get up early on Sunday, brunch would make life brighter for Saturday night carousers. It would promote human happiness in other ways as well,” the piece read. “It is talk-compelling. It puts you in a good temper, it makes you satisfied with yourself and your fellow beings, it sweeps away the worries and cobwebs of the week.” More than 100 years later, author Guy Beringer’s words still ring true, especially in the UAE, where brunches are often used to mark special, sociable occasions.
Is it worth it? We put cheesecake frap to the test.
The verdict from the nutritionists is damning. But does a cheesecake frappuccino taste good enough to merit the indulgence?
My advice is to only go there if you have unusually sweet tooth. I like my puddings, but this was a bit much even for me. The first hit is a winner, but it's downhill, slowly, from there. Each sip is a little less satisfying than the last, and maybe it was just all that sugar, but it isn't long before the rush is replaced by a creeping remorse. And half of the thing is still left.
The caramel version is far superior to the blueberry, too. If someone put a full caramel cheesecake through a liquidiser and scooped out the contents, it would probably taste something like this. Blueberry, on the other hand, has more of an artificial taste. It's like someone has tried to invent this drink in a lab, and while early results were promising, they're still in the testing phase. It isn't terrible, but something isn't quite right either.
So if you want an experience, go for a small, and opt for the caramel. But if you want a cheesecake, it's probably more satisfying, and not quite as unhealthy, to just order the real thing.
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
UAE currency: the story behind the money in your pockets
