Rating Action
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 Burgan Bank
K.P.S.C. (BB) at ‘A+’ and ‘A1’, respectively. At the same time, CI Ratings has affirmed BB’s Standalone Rating (BSR) of ‘bbb+’, Core Financial Strength (CFS) rating of ‘bbb+’ and Extraordinary Support Level (ESL) of High. The Outlook for the LT FCR and BSR has been maintained at Stable.
CI Ratings has also affirmed the issue rating on BB’s KWD150mn Perpetual Additional Tier 1 Bonds at ‘BBB-’ with a Stable Outlook.
Rating Drivers
As the ESL is set at High, there is a three-notch uplift for the LT FCR over the BSR, taking it to ‘A+’. The ESL reflects CI’s view that official support for BB would be forthcoming if needed. As the sovereign is itself rated ‘A+’ by CI, financial capacity to support is not in doubt. Despite the lack of…