Kuwait Finance House – 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 Kuwait Finance House K.S.C.P. (KFH or the Bank) at ‘A+’ and ‘A1’, respectively. At the same time, CI Ratings has affirmed KFH’s Bank Standalone Rating (BSR) of ‘bbb’, Core Financial Strength (CFS) rating of ‘bbb+’ and Extraordinary Support Level (ESL) of Very High. The Outlook on the LT FCR and BSR remains Stable.

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…