Mubasher: Moody's Investors Service has affirmed the local and foreign currency long-term and short-term deposit ratings of Barwa Bank and International Bank of Qatar (IBQ) at ‘A2/P-1’, with a stable outlook.

The global rating agency affirmed both Qatari banks’ baseline credit assessments (BCAs) adjusted BCAs at ‘baa3’, according to a statement released on Thursday.

“The affirmation of Barwa's ratings captures Moody's view that the forthcoming merger with IBQ will not immediately alter the bank's standalone credit profile. The combined entity's asset quality will improve modestly,” Moody’s said.

In 2018, Barwa Bank and IBQ announced that they have inked a final merger agreement. A move that was expected to create a leading sharia-compliant financial institution with a solid financial position and robust liquidity.