Doha Bank's foreign currency ratings raised

The support rating of 3 is affirmed.

The increase in capital in April this year, the sound asset quality and strong, sustainable core profitability are underlying factors which support the upgrade in ratings.

Doha Bank continued to expand its loan and Islamic financing portfolios briskly in 2007.

Investment in risk management enabled DB to keep asset quality at a high level.

Capital adequacy remained strong, boosted by a rights issue in Q2 2008.

Liquidity is also satisfactory, with sound growth in customer deposits, including unrestricted Islamic investment accounts.

DB accessed the international markets for a substantial syndicated bullet term loan, supplementing the existing subordinated term loan. Gross income grew robustly due to the expansion of the loan and Islamic financing portfolio.

The cost/income ratio rose slightly, with operating expenses rising faster than gross income, as DB invested in new products and markets in an inflationary environment.

DB is establishing an international network which will diversify risk.

Although recoveries of earlier loan-loss provisions were lower, DB once again reported record net profits in 2007.

Qatar's economy continues to expand and diversify, based on the platform of its huge hydrocarbon resources.

The government's financial position continues to improve.

CI raised the State of Qatar's sovereign ratings in January 2008: foreign currency long-term to AA- and short-term to A1+.

On the basis of the above favourable factors, CI now raises DB's foreign currency ratings to A long term from A- and the financial strength rating to A from A-.

CI affirms the short-term foreign currency rating at A2, while the support factor of 3 reflects the Bank's diversified share-holding structure.

All ratings carry a Stable outlook. Going forward, DB's investment in expanding its international network and activities should contribute to diversifying risks and sources of earnings.