Moodys assigns ABK A2 foreign-currency deposit rating, stable outlook

Kuwait - Al Ahli Bank of Kuwait (ABK) said on Monday that Moody's Financial Services assigned the lender’s long-term foreign-currency deposit rating at ‘A2,’ with a ‘stable’ outlook.

Furthermore, ABK’s long-term foreign-currency counterparty risk rating came in at ‘A1,’ with also a ‘stable’ outlook, the bank said in Kuwait Boursa disclosure.

The credit-rating agency assigned ABK’s long-term unsecured senior debt in foreign currencies at ‘A2,’ while the outlook was ‘stable.’

Moody’s deposit and unsecured senior debt ratings were built on government’s move to elevate the level of baseline credit assessment (BCA), reflecting the possibility of the government’s support.

ABK’s ‘baa3’ standalone baseline assessment reflected the strong market value, with the bank’s tangible common equity to risk-weighted assets ratio of 15.1% by the end of last June.

The ‘baa3’ rating also indicated the lender’s large reserves for losses from loans, stable financing base and sufficient loss-absorption liquidity buffers.

The ratings saw no change over the past few years, ABK said, expecting no impact on its financial position over the short term.

Over the long term, ratings are expected to improve, amid the pick-up in domestic and regional markets, the bank noted.