The credit rating provider cited the bank's sound asset risk profile, robust capitalisation and sufficient liquid resources as credit strengths before judging the bank's counterparty risk assessment to be Aa3 (equivalent to AA-).

Al Rayan's baseline credit assessment (BCA) was judged to be A2 (A) – with the support of its parent Masraf Al Rayan – and Baa2 (BBB) independently.

Sultan Choudhury, CEO of Al Rayan Bank, said: “This credit rating marks an important milestone in the history of Al Rayan Bank.

“Since the acquisition by Masraf Al Rayan in 2014, we have implemented a growth strategy to strengthen the balance sheet and build a high credit quality and stable asset book.

“We very much value the on-going backing from our parent Masraf Al Rayan and the Qatar Investment Authority, both of whom support our position in the UK.

“Moody's credit rating recognises the significant progress that we have made in recent years.”

Amir Firdaus, treasurer of Al Rayan Bank, added: “The credit rating enables further diversification of the bank's funding.

“We will provide alternative opportunities for the wholesale markets that are competitive as well as ethical.

“Banks, local authorities, other institutional investors, as well as our established retail customer base, will be reassured by the strong credit rating that Moody's has assigned to Al Rayan Bank, providing them [with] exposure to the Islamic finance markets.”