Credit rating agency (Moody's) announced the affirmation of Kuwait Finance House (KFH) bank's ratings; With a stable outlook in line with the stable outlook given to the source classification assigned to the State of Kuwait.
In a statement to the Kuwait Stock Exchange, today, Sunday, KFH said that the agency has fixed the bank's long- and short-term deposit ratings at category (A2) and (P-1), respectively. , as well as the Bank's revised independent baseline assessment at (baa3).
The bank clarified that the long-term deposit rating at (A2) is based on the bank's independent baseline credit rating of (baa3). Moody's expects that KFH will have a very high probability of obtaining support from the Government of Kuwait (A1 / stable outlook), if necessary.
The independent credit assessment of the bank reflects the strong and diversified Islamic activities that KFH enjoys, which supports its strong profitability, and improves the risk of assets compared to pre-2014 levels, in addition to The power of its capitalization.
In contrast to the previous strengths, Moody's said in the report that there is a significant sectoral focus and international operations in countries where the agency expects operating conditions to put pressure on the financial indicators of its subsidiaries. .
The agency stated that the stable outlook reflects the strength of KFH's capitalization and liquidity, and on the other hand it is matched by the focus on sectors and challenges related to the continued implementation of the restructuring plan to address past problems.
Baytak clarified in the statement that the rating is not expected to have any impact on the bank's financial position.
The bank's profits rose by 79.5% in the first half of this year; To reach 102.193 million dinars, compared to profits of 56.917 million dinars in the same period of 2020.
