Fitch downgrades National Bank of Kuwait's viability rating
Source - SMW
Fitch Ratings has affirmed National Bank of Kuwait's long-term issuer default rating at 'AA-' with a stable outlook but downgraded its viability rating (VR) to 'a-' from 'a'
The agency said this followed a reassessment of the bank's financial metrics, in terms of ratios (especially profitability and capitalisation) and absolute values (especially total assets, loans, deposits and equity) against regional peers with similar ratings.
Fitch said the downgrade also reflected the bank's increased non-investment grade securities book relative to equity, as well as unhedged foreign currency risk from foreign subsidiaries.
Fitch has also affirmed subsidiary National Bank of Kuwait (International)'s (NBKI) long-term issuer default rating at 'AA-' with a stable outlook.