CI Ratings has affirmed its A+ long-term foreign currency rating of Commercial Bank of Kuwait (Al Tijari) with a stable outlook.
The bank’s short-term foreign currency rating was adjusted from A2 to A1 and is supported by a general improvement in most key financial areas in 2018, which includes capitalisation, loan asset quality as well as reserve coverage and liquidity.
Al Tijari’s three-notch uplift of the long-term foreign currency rating is based on a high level of support and the support considers the bank’s market position in the Kuwaiti banking sector.
In a statement, CI Ratings stated the Kuwaiti government helps banks in the event of need, providing a state guarantee on all deposits placed inside the country.
The bank’s standalone rating is based on a core financial strength (CFS) and the CFS rating reflects financial credit strengths of excellent asset quality, strong capitalisation and satisfactory liquidity.
Additionally, profitability is also a credit strength in terms of good returns at both the operating and net levels, the bank’s profitability reflects a low cost of funds, a very low cost-income ratio and a good net interest margin.
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