Fitch lowers Kuwait Finance

Fitch Ratings said it downgraded Kuwait Finance House's viability rating to BB+ from BBB- and affirmed the bank's long-term issuer default rating at A+ and short-term issuer default rating at F1.

The outlook is stable.

The downgrade reflects the bank's weak asset quality ratios, the resulting high impairment charges that continue to impact profitability and capitalization that is lower than some peers despite significant sector concentrations in its financing book, Fitch said.

The ratings also consider the company's dominant franchise in Kuwait, strong funding profile and acceptable liquidity, the agency said.

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