KCB well placed to weather in­ter­est cap storm – S&P

The Star (Kenya) - - News -

Global rat­ing agency Stan­dard & Poor’s has re­viewed KCB Group’s credit out­look to sta­ble from neg­a­tive, un­der­lin­ing its abil­ity to raise cap­i­tal at favourable rates.

S&P Global has af­firmed a B+ longterm and B short-term credit rat­ings on KCB, say­ing the sta­ble out­look mir­rors a sim­i­lar ac­tion taken on the coun­try’s sov­er­eign rat­ing last week.

“We re­cently re­vised the out­look on Kenya to sta­ble from neg­a­tive, re­flect­ing our view that the sov­er­eign’s eco­nomic per­for­mance and growth prospects will re­main strong over 2016-19,” S&P said in a state­ment. “We be­lieve KCB is well po­si­tioned to main­tain its busi­ness po­si­tion and sta­ble fi­nan­cial per­for­mance, in part thanks to a more sup­port­ive eco­nomic en­vi­ron­ment.”

The rat­ings are sup­ported by solid prof­itabil­ity met­rics, a strong do­mes­tic re­tail and cor­po­rate fran­chise, strong cap­i­tal buf­fers, a well-struc­tured de­posit-based fund­ing model and high level of liq­uid as­sets.

S&P said KCB is best placed to weather the storm of the new op­er­at­ing en­vi­ron­ment in the Kenya’s fi­nan­cial sec­tor fol­low­ing the en­act­ment of a law cap­ping in­ter­est rates.

KCB Group chief ex­ec­u­tive Joshua Oi­gara said the lender’s future out­look re­mained pos­i­tive rid­ing on in­creased and de­lib­er­ate strate­gic in­vest­ments in dig­i­tal so­lu­tions.

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