Capital Intelligence Agency (CI) reasserted Kuwait Finance House (KFH) long-term credit rating at A+ and short-term at A1, which is a sign from a reputable rating agency that KFH is solid and stable, and is moving forward with its strategic expansion plans, not to mention its ability to overcome the global crisis. The agency’s report mentioned that KFH is one of the most prominent and advanced Islamic institutions in Kuwait and the world, which is evident by the large market share that it dominates in terms of credit, deposits and assets. In addition, KFH uses its powerful existence in the local market to reinforce its global existence where the need for Islamic banking products and services is on the rise, especially after the unprecedented profit it achieved in the past years, in addition to having the three most major Kuwaiti governmental authorities as participants in it, including the Public Authority for Investment, which supports the high levels of income of non-profitable stocks.
The Risk Management Department Manager Abdul Aziz Al-Badr stated that this positive rating at this time reveals KFH power and leadership as a pioneer Islamic institution that depends in its plans for local, regional, and international expansion on carefully studied strategies.
Moreover, the agency mentioned in its report that as a result of the sufficient liquidity that KFH possesses and in light of the rapid global expansion, KFH focused on diversifying its global expansion; and in spite of facing fierce competition from other prestigious Islamic institutions, KFH is fully capable of maintaining its leadership in the near future. The report also highlighted KFH’s strategic importance in the Kuwaiti banking sector and the availability of governmental guarantee for the deposits made in Kuwaiti banks.
Al-Badr stressed that KFH’s distinguished cover that was reinforced by large provisions supports KFH’s financial status and enable it to face the global crisis, in addition to going hand in hand with the requirements of the supervisory authorities and abides to the strict professional and international demands, which ensures the continuity of growth rates according to set plans.
It is worth mentioning that the major rating agencies have underscored their trust in KFH through asserting their ratings despite the global crisis. In addition to that, KFH has received many awards, such as Best Bank in Kuwait, Best Islamic Bank, Most Trusted Bank, Biggest Bank (market share) in the Middle East, and other awards.
As a result of the deterioration of quality of assets and its effect on profits and capital adequacy ratio, CI adjusted the financial power of KFH to become A-, and CI mentioned that the granted rate reveals the participation of the three governmental authorities.