KUWAIT CITY, June 15: Fitch Ratings reaffirmed Kuwait International Bank’s Long Term Issuer Default Rating “A+”, Short Term Issuer Default Rating “F1” and Viability Rating (VR) at “b+” with a stable outlook.
KIB’s Issuer Default Ratings (IDR) reflect an extremely high probability of support from the Kuwaiti authorities, if needed. Fitch Ratings assessment of support is based on the financial strength of Kuwait, in addition to the authorities’ demonstrated willingness to support the domestic banking system.
According to Fitch, KIB’s VR reflects the Bank’s modest but improving franchise, its evolving strategy and relatively high concentration of financing to domestic real estate. On the other hand, NPL ratio fell to 1.1 percent at end of 2015 following write offs and recoveries. KIB’s five-year strategy implemented in 2015 is based on building its retail and corporate franchise, and expanding the network. KIB now enters a new phase in its strategic plan, where stable growth is expected to be generated from the new product segments.
Fitch had affirmed KIB’s rating is Long-term IDR “A+”, Short-term IDR “F1” and VR “b+” with stable outlook in November 2015.