S&P puts Ahli United Bank on positive watch

S&P said it placed the BBB long-term rating on Ahli United Bank on CreditWatch positive.

Kuwait Finance House and Ahli United Bank announced the preliminary exchange ratio for a proposed merger, subject to the outcome of due diligence, determination of the final exchange ratio and necessary regulatory approvals.

If the merger is completed, Ahli United Bank's creditors would be creditors of a more creditworthy bank, S&P said.

The agency said it intends to resolve the CreditWatch placement once it has sufficient information about the completion of the merger transaction, which could take longer than three months.

Although Ahli United Bank has a slightly wider geographic reach and a more favorable funding position, Kuwait Finance has a stronger market position and customer franchise in Kuwait, S&P said.

The combination could create one of the largest Islamic financial institutions in the world, the agency said.

The current ratings reflect Ahli United Bank's good geographic diversification, well-defined strategy and strong management, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.