Fitch revises 11 Kuwaiti Banks view to negative

Fitch Ratings said it revised the outlooks on 11 Kuwaiti banks to negative from stable and affirmed the banks' respective issuer ratings.

The banks are National Bank of Kuwait SAKP, Kuwait Finance House, Burgan Bank KPSC, Al Ahli Bank of Kuwait, Boubyan Bank KSCP, Gulf Bank, Commercial Bank of Kuwait, Ahli United Bank (Kuwait), Kuwait International Bank, Warba Bank and Industrial Bank of Kuwait.

The rating actions follow a similar action on Kuwait's sovereign rating on Feb. 2 because their issuer ratings are driven by Kuwaiti state support, Fitch said.

The outlook reflects near-term liquidity risk associated with the imminent depletion of liquid assets in the sovereign's general reserve fund (GRF) in the absence of parliamentary authorization for the government to borrow, the agency said.

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