National Bank of Kuwait’s LT FCR and BSR Outlook Revised to Negative

National Bank of Kuwait’s LT FCR and BSR Outlook Revised to Negative

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has revised the Outlook on the Long-Term Foreign Currency Rating (LT FCR) and Bank Standalone Rating (BSR) of National Bank of Kuwait (NBK) to Negative from Stable. At the same time, CI Ratings has affirmed NBK’s LT FCR and Short-Term Foreign Currency (ST FCR) at ‘AA-’ and ‘A1+’, respectively. The Bank’s BSR has also been affirmed at ‘a-’.

The revision of the LT FCR Outlook reflects the expected impact on NBK’s credit profile from the coronavirus (Covid-19) pandemic, as well as the significant fall in the price of oil. There has been a sharp deterioration in both the domestic and international operating environment on the back of these two related events, which will have a negative impact on the Bank’s financials. The operating environment and economy is highly susceptible and…