Fitch Ratings has assigned International Bank of Qatar (Q.S.C.)’s (IBQ; A+/Stable/bb+) new USD2bn euro medium-term note (EMTN) programme a Long-term rating of ‘A+’ and Short-term rating of ‘F1’.
KEY RATING DRIVERS
The notes will be issued by IBQ Finance Limited in the Cayman Islands. IBQ Finance Limited is a limited liability company, a wholly owned subsidiary of IBQ that was set up solely to act as the issuer of debt funding.
The new programme’s rating is driven by IBQ’s Issuer Default Rating (IDR), reflecting Fitch’s view that default of this senior unsecured obligation would reflect default of the entity in accordance with Fitch’s rating definitions.
Notes issued under this programme are unconditionally and irrevocably guaranteed by IBQ. The guarantee constitutes direct, unconditional, unsubordinated and unsecured obligation of IBQ.
The notes, the guarantee and any non-contractual obligations arising out of or in connection with the notes will be governed by, and shall be construed in accordance with, English law.
The ratings are linked and therefore sensitive to a change in IBQ’s IDR. The IDR in turn is sensitive to a change in the perceived ability or willingness of the Qatari authorities to provide support to the bank, if needed.