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Capital Intelligence affirms Commercial Bank of Kuwait's financial strength rating at BBB+, outlook stable

January 28, 2014

Capital Intelligence (CI) affirmed the Commercial Bank of Kuwait's (CBK) financial strength rating (FSR) at BBB+ with a stable outlook, the agency said in a press release. The rating is supported by the bank's strong asset quality, full loan loss reserve coverage, strong capitalization and liquidity. However, the bank's rating also reflects weak profitability at the net level due to continued high provisioning. Moreover, CI affirmed both the long-term foreign currency rating at A- and the short-term foreign currency rating at A2 indicating its belief that Kuwaiti authorities will continue to guarantee customer deposits and to provide official financial support in case the bank faces financial challenges. With total assets standing at USD 13 .7bn at end-September 2013, CBK is Kuwait's fourth largest conventional commercial bank with members of the ruling family maintaining a controlling ownership stake. According to CI's research, the bank has good asset quality, strong capital ratios and good profitability. However, it remains vulnerable to concentrations in both loan and the deposit bases.


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Source: IntelliNews - Weekly Reports


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