Moody’s affirms Warba Bank Baa2/ Prime-2 credit rating; outlook stable
‘Share capital increase will enhance the bank’s shareholders equities’
KUWAIT CITY, Oct 18: Warba Bank, the best investment and corporate bank in Kuwait announced that Moody’s Investors Service affirmed the Bank’s credit rating of 2015 with a stable outlook. According to the report issued on 10/10/2018; Warba Bank’s deposit ratings have been affirmed Baa2 / P-2, baseline credit assessment of ba3, counterparty risk assessment at Baa1 (cr) / Prime-2 (cr).
According to Moody’s Investors Service, Warba Bank’s ratings reflects Kuwait’s robust overall economic situation (rated as Aa2Stable), and the government willingness to provide support to the Bank if needed it also reflects the government’s direct and indirect stake in Warba and the support given to banks when needed.
Moody’s report elaborated that In June 2018, Warba announced that the Central Bank of Kuwait (CBK) had approved a 50% increase in the bank’s share capital totaling planned capital issuance of around KWD90 million. It elaborated that this credit- positive issuance is expected to increase the Bank’s core capital.The Bank’s ratings also reflect its solid liquid resources, moderated by rapid growth and high credit concentrations, low core capitalisation, relatively low profitability and concentrated funding base. . .
In this regard, Shaheen H. Alghanem, Warba Bank’s CEO said: “Affirming Warba Bank’s credit rating atBaa2 / P-2 is a key indicator of Warba Bank’s steady performance, operational growth, high asset quality, and its ability to achieve sustainable revenues and profits despite the challenges witnessed by the local and international economy”.
Alghanem added; ”The share capital increase and its investment in the Bank’s strategic operations shall form key positive factor in raising the Bank’s credit quality, core capitalization and reward our shareholders.
He also stressed that Warba Bank today enjoys the confidence of Kuwaiti, GCC and foreign investors, following the Bank accomplishments of mega financing transactions in the region which attracted investors from all over the world.
Alghanem said that affirming Warba Bank’s ratings with a stable outlook reflects the Bank’s solid liquidity, continuous improvement in profitability allowing the Bank to proceed in its growth and expansion plan in the short and medium terms. The adequate liquidity levels maintained and controlled by Warba Bank in a balanced manner has been one of the positive factors that contributed towards assigning and affirming the Bank’s rating. .
“Warba Bank continues in achieving high growth and expansion levels through the implementation of its ambitious strategy which makes balance between the increase in market share and customer base, expansion, and providing excellent and innovative products and services on the one hand, and the profitability rates and raising its operating efficiency on the other hand. Optimistic expectations still await the Bank with regards to its performance and results in the coming period due to the great efforts made by the Executive Management and all employees. The Bank is witnessing successes at several operational levels and keeps winning the confidence of financial institutions, banks and investors in the GCC countries, including Kuwait, and foreign markets”. Alghanem added.