Fitch, the internationally renowned ratings agency, has upgraded the Long Term foreign currency rating of Kuwait Finance House (KFH) by one notch to “A-” (from “BBB+”) and the Support rating to ‘1’ (from ‘2’) with a ‘Stable’ Outlook.
The upgrade is in recognition of KFH’s financial strength, sustained growth, and continued overall progress, market reputation, product innovation, state-of-the-art information technology platform, ownership structure, high likelihood of government support in case of need, compliance to prudent regulations and imminent regulatory supervision.
Effective 24th May 2004 KFH has also been included in the Central Bank of Kuwait’s register of Islamic Banks vide Decree No. 17/2004 of the Ministry of Finance to come directly under CBK’s supervision following implementation of a new Islamic Banking Law No. 30 of 2003 as an addition/supplement to Chapter III of Law No. 32/1968 concerning Currency, Central Bank of Kuwait and the organization of Banking Business in Kuwait.
As a pioneer in Islamic banking, KFH has built up a strong brand franchise in Islamic banking, consumer financing and a niche market in corporate credit operations over a 25-year period to become a clear market leader in Islamic banking and finance with a dominant market share.
Pleased with the upgrade, Jassar Al-Jassar, the General Manager of Kuwait Finance House attributed KFH’s success to its strong capital base, consistent performance, sustained profitability and continuing investment in Human Resources and IT, which is likely to stand KFH in good stead, notwithstanding any competition.
Commenting on the upgrade, Mohammed Al-Omar, Assistant General Manager, Investment Sector mentioned that KFH’s business diversification, increased overseas expansion, and integrated product supply chain has added value and strengthened its position in the global market.