Boubyan Bank – Initial Rating Assigned to KWD100mn Perpetual Additional Tier 1 Sukuk

24 August 2026

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has assigned a first-time issue rating of ‘BBB-’ to the proposed KWD100mn Basel III-compliant Perpetual Additional Tier 1 Sukuk by Boubyan Bank (BB or the Bank). The Outlook assigned for the rating is Stable.

CI Ratings has also affirmed the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) of BB, the issuer, at ‘A’ and ‘A1’, respectively. At the same time, CI has raised BB’s Bank Standalone Rating (BSR) and Core Financial Strength (CFS) rating to ‘bbb+’, both from ‘bbb’. The two-notch uplift of the LT FCR above the BSR is based on an Extraordinary Support Level (ESL) of High. The Outlook for the LT FCR and BSR is Stable.

The issue rating is derived from: (i) BB’s BSR; (ii) the sukuk’s contractual subordination; (iii) the risk that coupon payments might not be made in full and on time given discretionary and/or mandatory…