S&P may cut Kuwait Finance

Standard & Poor's said it placed the A- long-term counterparty credit rating on Kuwait Finance House on CreditWatch with negative implications. The A-2 short-term counterparty credit rating was affirmed.

"The rating action reflects our view that the material deterioration of asset quality indicators and reduced revenue generating capability - linked to the bad performance of equity and real estate markets - have negatively affected KFH's financial profile," S&P analyst Nicolas Hardy said in a statement.

The bank's leading position in Islamic banking in Kuwait, adequate capitalization and good financial flexibility, derived from its close links with the government, are important mitigating factors, the agency 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.