KUWAIT: Fitch Ratings, the international credit rating agency, affirmed National Bank of Kuwait's (NBK) Long-term Issuer Default Rating (IDR) at 'AA-', the highest in the Middle East and North Africa, with a Stable Outlook. Fitch said that NBK's ratings reflect its dominant domestic franchise, with leading shares in most market sectors, as well as its international network.
The ratings also consider the Bank's consistent profitability, sound asset quality and stable deposit base. "NBK continued its strong profitability during 2012, as well as maintaining its leading market share in its principal business lines", said Fitch. Fitch expects NBK's profits to continue at a similar level in 2013. The rating agency added that traditionally NBK has a very stable deposit base and is seen in the region as a 'safe haven' for funds in times of volatility." Despite the acquisition of the controlling stake in Boubyan Bank, Fitch stressed that NBK's capital base is still strong.
The agency pointed out that NBK is the largest bank in Kuwait by assets and has leading shares in most market sectors. The business is split into the main business areas of corporate banking, retail and private banking, investment banking, and international banking.
With the consolidation of Boubyan Bank, NBK is now the only bank in Kuwait servicing both the conventional and Islamic banking markets. NBK enjoys the highest credit ratings of all banks in the Middle East and North Africa region by the major international rating agencies: Moody's, Standard & Poor's and Fitch Ratings. In their latest reports, the three rating agencies affirmed NBK's credit ratings with a stable outlook. NBK also maintains its position among the 50 safest banks in the world for the seventh time in a row.
© Kuwait Times 2013
