Industrial Bank of Kuwait – 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 Industrial Bank of Kuwait (IBK) at ‘A+’ and ‘A1’, respectively. At the same time, CI Ratings has affirmed both the Bank Standalone Rating (BSR) and Core Financial Strength (CFS) at ‘bbb+’. The Outlook for the LT FCR and BSR remains Stable.

The three-notch uplift of the LT FCR above the BSR is based on an ESL of High. The ESL takes into account the Bank’s special market position in the Kuwaiti banking sector as the country’s sole development bank, and the substantial shareholding by the Kuwaiti government (at approximately 49%). In addition, the government has a strong track record of providing assistance to Kuwaiti banks in the event of need. The three-notch uplift also reflects the very strong financial capacity of the government to provide support as indicated by Kuwait’s…