Moody’s Investors Service (“Moody’s”) has completed a periodic review of the ratings of Kuwait Finance House K.S.C.P. and other ratings that are associated with the same analytical unit.
The review was conducted through a portfolio review in which Moody’s reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
The review did not involve a rating committee. Since 1 January 2019, Moody’s practice has been to issue a press release following each periodic review to announce its completion.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement.
For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. Key rating considerations are summarized below.
Kuwait Finance House’s (KFH) A1 long term deposit rating is driven by the bank’s standalone baseline credit assessment (BCA) of baa3 and five notches of government support. Moody’s assumes very high likelihood of government support from Kuwait (rated Aa2).
KFH’s long-term ratings and assessments were placed under review for possible downgrade on April 1st 2020, for details see Moody’s press release issued on that date.
The bank’s baa3 BCA captures its solid asset risk and strong capitalization. It also reflects the bank’s strong and diversified Islamic franchise, which supports its robust profitability. It also takes into account the bank’s significant international exposures in countries where we expect operating conditions to weaken and high sector concentration.
This document summarizes Moody’s view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.
The principal methodology used for this review was Banks Methodology published in November 2019.
This announcement applies only to EU rated and EU endorsed ratings. Non EU rated and non EU endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.
This publication does not announce a credit rating action.
Source Yahoo Finance