Kuwait – Mubasher: Moody's Investors Service on Thursday upgraded its long-term deposit rating on Boubyan Bank to "A3" from "Baa1".
The baseline credit assessment rating was also raised to "A2(cr)/Prime-1(cr)" from "A3(cr)/Prime-2(cr)". The bank's adjusted baseline credit assessment (BCA) to "a3" from "baa1", according to the Moody’s statement.
Moody's has changed the outlook on the bank's long-term deposit ratings to "Stable" from "Positive".
The upgrade in the long-term deposit ratings reflects Moody's view of the growth in Boubyan's domestic market share, the statement added.
Moody's stated that its affirmation of Boubyan's "ba1" BCA reflects its growing domestic retail and corporate franchise, which supports its solid profitability metrics, strong capital buffers, and stable funding profile.
“These strengths are moderated by the downside risks to the bank's asset quality, owing to its high credit concentrations combined with a relatively unseasoned financing book, following a rapid growth over the recent years,” Moody’s said.
