Mubasher: Moody's Investors Service has assigned a Ba3 rating to the proposed USD-denominated, perpetual, non-cumulative additional tier 1 (AT1) capital securities to be issued by Al Ahli Bank of Kuwait (ABK)
The securities constitute direct, unconditional, subordinated and unsecured obligations of ABK. The terms and conditions of the capital securities incorporate Basel III-compliant non-viability language in accordance with Central Bank of Kuwait (CBK) instructions, and will qualify as additional Tier 1 regulatory capital, the ratings agency said in a report on Friday.
“The Ba3 (hyb) rating assigned to the AT1 securities is based on ABK's standalone creditworthiness and is positioned three notches below the bank's baseline credit assessment (BCA) and Adjusted BCA of baa3, in accordance with Moody's standard notching guidance for contractual non-viability preferred securities with optional non-cumulative coupon suspension,” Moody’s explained.
