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