Boubyan Bank’s Ratings Affirmed with a Stable Outlook

Boubyan Bank’s 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) at ‘A’ and ‘A1’, respectively. At the same time, CI Ratings has affirmed BB’s Bank Standalone Rating (BSR) and Core Financial Strength (CFS) of ‘bbb’. The Outlook for the LT FCR and BSR is Stable.

The three-notch uplift of the LT FCR above the BSR is based on an Extraordinary Support Level (ESL) of High. Although we believe 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…