Boubyan Bank – Ratings Affirmed with a Stable Outlook

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) of Boubyan Bank (BB or the Bank) at ‘A’ and ‘A1’, respectively. At the same time, CI Ratings has affirmed BB’s Bank Standalone Rating (BSR) of ‘bbb’, Core Financial Strength (CFS) rating of ‘bbb’ and Extraordinary Support Level (ESL) of High. The Outlook on the LT FCR and BSR is Stable.

The three-notch uplift of the LT FCR above the BSR is based on an ESL of High. Although we believe the National Bank of Kuwait (NBK), as the majority owner, would assist BB if needed, the uplift for ESL reflects the high probability of sufficient and timely support from the authorities in the event of financial distress. The ESL takes into account the Kuwaiti government’s strong track record of providing assistance to banks in the event of need, the existence of a state guarantee on all deposits…