S&P acts on Kuwaiti banks

S&P said it revised the outlooks on Burgan Bank, National Bank of Kuwait and its subsidiary National Bank of Kuwait International plc to negative from stable. The outlooks on these banks mirror that on the sovereign.

“The rating actions on the banks follow the downgrade of Kuwait. The sovereign downgrade reflects the persistent lack of a comprehensive funding strategy despite the central government's ongoing sizable deficits. Due to parliamentary opposition, the government has so far been unable to pass a law giving it the authority to issue debt or gain immediate access to its large stock of accumulated assets,” S&P said in a press release.

The outlook is stable.

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