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Fitch Affirms National Bank of Kuwait at AA-

Finance Kuwait City 22 Apr 21
Fitch Affirms National Bank of Kuwait at AA-
Fitch Ratings has affirmed National Bank of Kuwait Long-Term Issuer Default Ratings at 'AA-' with Negative Outlooks.
Fee
Event Location
Kuwait , Kuwait
Area
Kuwait City
Start Time
22 April 2021, 12:00 AM
End Time
30 April 2021, 12:00 AM
Website

Fitch Ratings has affirmed National Bank of Kuwait S.A.K.P.'s (NBK), National Bank of Kuwait's (International)'s (NBKI) and National Bank of Kuwait France S.A.'s (NBKF) Long-Term Issuer Default Ratings at 'AA-' with Negative Outlooks.

National Bank of Kuwait’s (NBK) Issuer Default Ratings (IDR) is driven by support from the Kuwaiti state. The Support Rating (SR) of '1' and Support Rating Floor (SRF) of 'AA-' reflect Fitch's view of an extremely high probability of support being provided by the Kuwaiti authorities to all domestic banks if needed. NBK's SRF is one notch above Fitch's Domestic-Systemically Important Bank SRF of 'A+' for Kuwait, given the bank's unique status, systemic importance as the flagship bank in Kuwait and strategic links with the state.

Fitch's expectation of support from the authorities is strengthened by Kuwait's strong ability to provide support to domestic banks, as reflected by the sovereign rating (AA/Negative) and a strong willingness to do so irrespective of the bank's size, franchise, funding structure and level of government ownership. This view is reinforced by the authorities' record of support for the domestic banking system.

The Negative Outlook on NBK's Long-Term IDR reflects that on the Kuwaiti sovereign rating.

Earlier in February, Fitch Ratings revised the Outlooks on 11 Kuwaiti banks' Long-Term IDRs to Negative from Stable and affirmed the banks' respective IDRs.

The banks are National Bank of Kuwait SAKP (NBK), Kuwait Finance House KSCP (KFH), Burgan Bank KPSC (BB), Al Ahli Bank of Kuwait KSCP, Boubyan Bank KSCP (BBY), Gulf Bank KSCP, Commercial Bank of Kuwait KPSC, Ahli United Bank (Kuwait), Kuwait International Bank KSCP (KIB), Warba Bank KSCP (WB) and Industrial Bank of Kuwait KSC.

Kuwait finance news 2021Fitch Kuwait banks ratings



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