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A+ ratings affirmed for Al Tijari

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The Commercial Bank of Kuwait (Al Tijari)’s Tier 1 ratio is at a strong level and the liquidity profile improved with a deeper base of liquid assets.

Tuesday 09, July 2019

CI Ratings has affirmed its A+ long-term foreign currency rating of Commercial Bank of Kuwait (Al Tijari) with a stable outlook.

The bank’s short-term foreign currency rating was adjusted from A2 to A1 and is supported by a general improvement in most key financial areas in 2018, which includes capitalisation, loan asset quality as well as reserve coverage and liquidity.

Al Tijari’s three-notch uplift of the long-term foreign currency rating is based on a high level of support and the support considers the bank’s market position in the Kuwaiti banking sector.

In a statement, CI Ratings stated the Kuwaiti government helps banks in the event of need, providing a state guarantee on all deposits placed inside the country.

The bank’s standalone rating is based on a core financial strength (CFS) and the CFS rating reflects financial credit strengths of excellent asset quality, strong capitalisation and satisfactory liquidity.

Additionally, profitability is also a credit strength in terms of good returns at both the operating and net levels, the bank’s profitability reflects a low cost of funds, a very low cost-income ratio and a good net interest margin.

TAGS : Commercial Bank of Kuwait, CI Ratings, Al Tijari)

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