Kuwait – Mubasher: Moody's Investors Service affirmed today the A3/Prime-2 deposit ratings and A2(cr)/Prime-1(cr) Counterparty Risk (CR) Assessment of Burgan Bank K.P.S.C., which are underpinned by a ba2 baseline credit assessment (BCA). The bank's long term deposit ratings carry a stable outlook.
Today's rating action follows the recent sale of Burgan's 51% stake in Jordan Kuwait Bank (JKB) to a subsidiary of the Kuwait Projects Company (Holding) K.S.C. (KIPCO, Baa3 stable), Burgan Bank's own parent company, and mainly reflects: the positive impact on the bank's capital metrics from the sale, which is within Moody's expectations and allows the bank to meet the Central Bank of Kuwait's enhanced capital requirements while continuing its growth strategy; the modest impact on the bank's geographical asset exposure (as defined by Moody's Macro Profile, which remains unchanged) and our expectation that the bank will continue to focus on diversification into high growth and relatively (compared to Kuwait ) higher risk markets, according to the ratings agency.
