Fitch Ratings affirmed the issuer's long-term defaults rating for Boubyan Bank of Kuwait at (A +); With a stable outlook.
The agency indicated in its report that Boubyan Bank's rating was supported by the sovereign rating of the State of Kuwait.
and explained that it assigned the bank's credit rating at (- bbb), support rating at (1), and support ceiling at grade (+ A), indicating that The last two ratings reflect its vision of a very high probability of providing support to local banks by the Kuwaiti government if needed.
and while Fitch indicated that the Central Bank of Kuwait applies a strict and direct control system to the banking system, in order to ensure the merit of the banks and their continuity, she pointed out that he had previously He intervened urgently during the past years, to provide support when needed.
and the agency stated that its expectation of providing government support comes due to the strong government's ability to provide support to local banks thanks to the country's sovereign rating, and the strong desire to provide that, regardless of the size of the bank And 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.
and indicated that the creditworthiness rating reflects the continuous growth of Boubyan Bank's activity, in addition to the presence of a consistent and experienced management team, in addition to its enjoyment of appropriate asset quality measures, Reasonable profitability, with adequate capital, adequate funding stability and liquidity.
Fitch also indicated that the bank continued to consolidate its position with its share of the local market reaching about 8.6% in terms of total assets by the end of 2019.
(Amazon Fun Knowledge)
