...Viability Rating Drives Ratings: Bank Muscat SAOG's (BM) Issuer Default Ratings (IDRs) are based on its Viability Rating (VR) and underpinned by potential sovereign support. The VR reflects the bank's leading franchise, competent management, resilient loan quality, stable profitability and funding, and capitalisation above domestic peers'. It also considers concentration risk. It is capped by the operating environment and the Omani sovereign rating. Flagship Bank: BM has leading market shares in Oman (36% of domestic assets). Its large branch network, strong client relationships and brand, and strategic links to the sovereign underpin BM's distribution capabilities, revenue generation and deposit collection. Concentration Risk: BM's concentrations by economic sector, single obligor and geography are high by international standards and expose the bank to event risk. However, BM's competent and experienced management supporting strategy implementation and good risk controls mitigate risks....
