The credit rating agency, Moody's, announced the completion of the periodic review of Burgan Bank ratings, as the agency affirmed the bank's ratings with a stable outlook.
The bank said in a statement to the Kuwaiti Stock Exchange, today, Wednesday, that the agency classified long-term deposits at A3 with a stable outlook, and classified the basic credit rating at ( ba2).
The bank explained that the long-term deposit rating at (A3) is driven by the bank's rating for the basic credit evaluation at (ba2) and five degrees of upgrading support by the parent company And the Kuwaiti government support.
and Moody's assumes a moderate probability of Burgan Bank receiving support from its parent company, Kuwait Projects Holding Company (rated Baa3 negative), and a high probability of receiving support from the Kuwaiti government (Rated at a stable A1 grade).
The agency indicated in its report that the basic credit rating of Burgan Bank at (ba2) reflects comfortable liquidity and stable income before provisions that support strong profitability and sufficiently bad loans. The bank’s capitalization is solid, but it is still lower than the average of Kuwaiti banks.
