Moody's maintained its stable outlook of the Kuwaiti banking system, assessing the average long-term deposit rate in the local currency at A1, and the average weighted assets of the core credit at the rate (baa3), indicating that this reflects the very high probability of the Governmental support to the local banks in case of need.
The agency granted the long-term deposits of NBK a rating of (Aa3), an (A1) rating to the Kuwait Finance House (KFH), while Burgan Bank, Gulf Bank, Commercial bank and Boubyan Bank were rated at (A3), in addition to rating Al-Ahli Bank and Al-Ahli United Bank at (A2), and Warba Bank at (Baa2).
Moody’s explained that all nine banks that it classifies have solid capital and strictly meet regulatory requirements, revealing that the adoption of the Accounting Standard No. 9, in addition to the regulatory provisions, allowed the banks to maintain significant reserves against the debt losses, which account for about 284 percent of stumbling loans.
The agency announced that the local banks have sufficient reserves in the form of a strong coverage package that gives them a wide capacity to absorb crises, as well as their capital and liquidity stability, making them well positioned to manage unexpected liquidity challenges.
Source: (Al-Rai newspaper – Kuwait, Edited)
