Mubasher: Moody's Investors Service has affirmed Commercial Bank of Kuwait's (CBK) A3 long-term and Prime-2 short-term deposit ratings.
The outlook on CBK's long-term deposit ratings remains stable.
At the same time, the rating agency affirmed CBK's A2/Prime-1 Counterparty Risk Ratings (CRR), A2/Prime-1 Counterparty Risk Assessment, and the bank's baseline credit assessment (BCA) and Adjusted BCA at ba1.
The research firm based this on its expectation that the Government of Kuwait (Aa2 stable) will remain willing to support banks in difficulty, underpinning CBK's ratings, according to a note on Thursday.
“Moody's view that the bank's solid capital and provisioning buffers, and comfortable liquidity balance the risks stemming from significant lending and deposit concentrations.
“CBK has demonstrated a strong revenue capacity, however, much of this income has been consumed by high provisioning costs in recent years, which indicate the bank's elevated asset risks,” it further explained,
