S&P ups Kuwait Finance House view to positive

Standard & Poor's said it revised its outlook on Kuwait Finance House to positive from stable and affirmed its long- and short-term counterparty credit ratings at A- and A-2, respectively.

The revision reflects the bank's strengthened capitalization and funding structure and above-average diversification by regional standards.

The ratings reflect the bank's leading commercial position in the State of Kuwait (A+/stable/A-1+), high profitability and broader diversification than its domestic competitors. The long-term rating includes a one-notch uplift from the stand-alone rating to reflect S&P's expectation that extraordinary support from the government, the bank's largest single shareholder, would be highly likely in case of need.

On the downside, the bank faces some risks due to its exposure to the real estate sector in managing its liquidity, the agency said.

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