IslamicFinance.de

Martin Morris reported on 23 February in Arabianbusiness that Moody's, says the fundamental credit outlook for the Qatari banking system is negative, reflecting expectations of a weakening in operating conditions.
In its new Banking System Outlook on Qatar the agency examines the likely future direction of fundamental credit conditions in the industry over the next 12 to 18 months. It does not represent a projection of rating upgrades versus downgrades.

Negative factors evaluated are the asset quality, impacted by property lending and the reduced profitability also impacted by stock market developments. The direct impact of the financial crisis has however so far been limited.

Rebecca Bundhun reported on 14 January in Arabianbusiness that Moody's sees the fundamental credit outlook for the UAE banking system as negative, as it comes under strain from falling property prices and tightening liquidity conditions. Moody’s Investors Service said on Wednesday its prediction covered the next 12 to 18 months and reflects the number of bank loans given to 'opportunistic' developers, who would struggle to repay them as the property market undergoes a correction.

John Tofarides is a Moody's analyst.