International credit rating agency Fitch has assigned Commercial Bank's (CB) $5bn euro medium-term note (EMTN) programme a long-term rating of 'A'.
The rating is in line with the bank's long-term issuer default rating (IDR) of 'A' and applies only to senior unsecured notes issued under the programme.
All other notes that can be issued under the programme, such as subordinated notes, will be rated on a case-by-case basis, the rating agency said.
Notes under the programme can be issued directly by CB or by its wholly-owned special purpose vehicle, CB Finance. The parent bank “unconditionally and irrevocably” guarantees any notes issued by CB Finance under the programme.
The programme's rating is aligned with the bank's long-term IDR, as the notes represent its senior, unconditional and unsecured obligations.
The lender's IDRs are driven by an "extremely high probability" of support from the Qatari authorities for domestic banks in case of need.
"This reflects the strong ability of Qatar to support its banks, as indicated by its rating (AA-/stable), combined with Fitch's belief of a strong willingness to support the banking sector, including CB," it said.
Senior notes issued by CB or CB Finance under the programme constitute direct, unconditional, unsubordinated and unsecured obligations of the relevant issuer, and will rank 'pari passu' among themselves and equally with all other unsecured and unsubordinated obligations of the relevant issuer.
In addition, the bank unconditionally and irrevocably guarantees the due and punctual payment of all sums payable by CBQ Finance in respect of notes issued under the programme and this guarantee constitutes a direct, general and unconditional obligation of CB, which will rank at least 'pari passu' with its other unsecured obligations.