Moody’s gives Kuwaiti banks negative view

Moody's Investors Service said it confirmed the long-term deposit ratings of National Bank of Kuwait SAKP at Aa3 and Kuwait Finance House KSCP at A1 and assigned negative outlooks to the banks' deposit ratings.

At the same time, the agency confirmed both banks' counterparty risk assessments (CR Assessment) at Aa2(cr) and A1(cr), respectively.

This action concludes the review initiated on March 7.

Moody’s said the negative outlook on the banks mirrors the negative outlook on the sovereign rating and captures Kuwait's fiscal pressures, which may weaken its capacity to provide support in the future.

The negative outlook on the sovereign rating reflects the agency’s view that there remain material uncertainties around the Kuwaiti government's ability to effectively implement its fiscal and economic reform program, which has the stated objective of diversifying and enhancing the economic base and its budgetary revenues.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.