Fitch puts KCB Bank, KCB Group

Fitch Ratings said it placed KCB Bank Kenya Ltd. (KCB Bank) and KCB Group plc's B+ viability ratings on Rating Watch negative.

The negative watch follows news that KCB Group intends to acquire National Bank of Kenya by year-end 2019 after regulatory and other necessary approvals are obtained, Fitch said.

The negative watch also considers that the acquisition would lead to weaker asset quality and capitalization metrics for the combined bank, inconsistent with the current viability rating, the agency said.

Fitch said it expects to resolve the negative watch following completion of the transaction and once information on the group's post-acquisition consolidated financial profile becomes available.

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