Fitch Ratings reaffirms KIB’s long-term IDR at ‘A+’
Agency affirms viability rating with a stable outlook
KUWAIT: Fitch Ratings, one of the leading global credit ratings agencies, has reaffirmed Kuwait International Bank’s long-term Issuer Default Rating (IDR) at ‘A+’ and affirmed viability rating (VR) to “bb-” with a stable outlook on 16 October 2017. The stable outlook reflects the outlook on the Kuwaiti sovereign rating.
According to Fitch, KIB continues to benefit from a fairly stable operating environment in Kuwait despite the economic impact of low oil prices. The Bank is exposed to slower economic growth, but Fitch believes that the government’s continuing capital spending plans will partially offset such pressures.
Fitch’s expectation of support from the authorities is underpinned by Kuwait’s strong ability to provide support to its banks, as reflected by its rating (AA/Stable) and strong willingness to do so irrespective of the banks’ size, franchise, funding structure and the level of government ownership.
Fitch views KIB’s new and experienced management team as necessary in order to execute the Bank’s new strategy set out in 2015. Sheikh Mohamed Jarrah Al-Sabah, Chairman of KIB said: “This latest rating action is reflective of KIB’s impressive standing, and they serve to highlight the Bank’s strong financial core as well as the soundness of its growth strategy. KIB’s positive performance, as highlighted by the improved financial results, comes as a result of the Bank’s new strategy. This strategy, which is currently underway, aims to bring about a comprehensive transformation across all sectors of the Bank, including: better asset quality, healthy capital buffer, improved performance, increase in profitability, new and innovative products, and enhanced service offerings to customers.”
Al-Jarrah further added: “KIB continues to make major strides in its mission to bring about a complete evolution of its banking operations and offerings. In an effort to provide customers with an enhanced digital banking experience, we have made major investments in upgrading our IT infrastructure and streamlining our systems and processes. We also continue to enhance our full suite of products and services, introducing innovative and state-of-the-art banking solutions. Our AlBoushra and Arzaq Deposit accounts continue to offer attractive profit rates, and we continue to have the highest rates in the market for savings. There is also a major push on the corporate banking side of our business, as we are developing tailored solutions and innovative products for corporate clients.
The Chairman concluded by saying: “Within the past year, KIB has garnered a number of prestigious local, regional, and international awards further enhancing it’s already impressive collection of industry awards and recognitions. The most recent of these achievements include the “Best Strategic Vision in Banking” award at the 2017 Arab Banks Awards & Commendations of Excellence ceremony, which was organized by the World Union of Arab Bankers (WUAB) in Beirut. Additionally, the Bank
received the “Best Change Management - Kuwait” Award by The Banker Middle East. KIB was also awarded the ‘Excellence in Development of Islamic Banking Services’ award by the Union of Arab Banks (UAB) in recognition of the Bank’s outstanding efforts to continuously develop its banking products and services, promote Islamic banking, serve the local community, as well as its customers.