Fitch Ratings affirmed ABK's ratings; With a stable outlook, as the agency classified the issuer's long-term defaults on the bank at (A +) with a stable outlook. It also assigned the bank’s short-term credit rating to F1.
Fitch clarified that the issuer's long-term default rating for the bank is supported by Kuwait's sovereign rating at AA, while the support rating and the minimum support rating indicate the agency's vision For the very high probability, the government will provide support to all local banks if needed.
and the agency confirmed ABK's creditworthiness rating at (+ bb), support rating at category (1), and the basic position of support at grade (+ A) .
and stated that its expectation of providing government support comes due to the strong ability of the government to provide support to local banks thanks to the country's sovereign rating, and the strong desire to provide this regardless of the size of the bank, the financing structure and the level of Government ownership in it, noting that this vision is strengthened by the government registry to support the banking system in case of need.
Fitch clarified that the bank's credit rating takes into account its moderate activity, in addition to its capital adequacy, stable financing position, liquidity integrity, as well as pressures on the operating environment. Due to the Coronavirus pandemic and the decline in oil prices.
(Amazon Fun Knowledge)
