Bank Muscat upgraded to A-

The foreign currency short-term rating is affirmed at A2, while the support rating is maintained at '2'.

All ratings carry a Stable outlook. The upgrade follows the recent increase in the foreign currency ratings of the Oman sovereign which owns 20% of the bank.

It also reflects the continuing strong growth in BM's business base, its good management which has delivered consistently strong results for several years and its overall sound financial position.

In the domestic sector BM is a leader in nearly all the market segments in which it operates, with its closest competitor still only one-third its size in terms of total assets.

While overseas expansion is a major focus, particularly in the GCC region, BM is handling this cautiously.

The overseas strategy will be difficult to implement given the strong competitive pressures in target markets. The bank's investment in India has the potential to unlock substantial value in the years ahead.