Burgan Bank – Issuer and Issue Ratings Affirmed with a Stable Outlook

Issue CRA

The four-notch uplift of the LT FCR above the BSR is based on an ESL of Very High. The ESL takes into account the government’s 38% ownership of KFH, the Bank’s prominent market position in the Kuwaiti banking sector as the second-largest bank in the country (and the leading Islamic FI), the government’s strong track record of providing assistance to banks in the event of need, the existence of a state guarantee on all deposits placed inside Kuwait, and the very strong financial capacity of the government to provide support.

KFH’s FCRs reflect the Bank’s good financing asset quality, specifically a low level of non-performing financings (NPFs), and a significant buffer with a high level of provisions, particularly general provisions. Additionally, the Bank has very good capitalisation including the CET 1 ratio, a satisfactory liquidity profile, and good profitability at both the operating and net levels.

The Bank’s BSR is derived from a CFS rating of…