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The affirmed rating confirms that NBK maintains one of the highest standalone credit ratings among all regional banks
S&P announced that it has affirmed National Bank of Kuwait’s (NBK) Long-Term Issuer Default Rating (IDR) at “A”, and cut the Outlook to “Negative”.
Affirming NBK’s credit rating proves that the bank maintains one of the highest standalone credit ratings among all regional banks, according to all international credit rating agencies.
S&P attributed cutting the bank’s outlook to the downgrade of Kuwait’s long-term sovereign credit rating to “A+” from “AA-”, and maintaining the “negative” outlook, in the absence of a long-term funding strategy due to the failure to adopt the Public Debt Law.
The affirmed credit rating reflects the bank’s high ability to meet its financial obligations, despite the implications of the pandemic on the economy and the downgrade of the country’s sovereign credit rating. It also confirms the bank’s strong franchise, diversified business model, high asset quality, solid capital base, as well as stabile funding and liquidity ratios.
NBK maintains strong capitalization, ample liquidity, as capital adequacy ratio stands at 18.2%; ahead of all regulatory requirements.
NBK also succeeded in pricing its latest bond issues at the lowest rates among conventional banks in the region, which reflects global investors’ appetite for NBK name, despite the current exceptional circumstances, and confirms the bank’s leadership and its strong credit position enabling it to attract international investors.
It is worth mentioning that National Bank of Kuwait reported a net profit of KD 160.8 million for 1H ended 30 June 2021, growing by 44.7% compared to the same period of 2020, and a net profit of KD 76.5 million for 2Q ended 30 June 2021, with a year-on-year increase of 128.8%.
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© Press Release 2021
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