Fitch assigns ratings to Cyprus' Kommunalkredit International Bank
Fitch Ratings has assigned Cyprus-based Kommunalkredit International Bank (KIB) ratings of Long-term A+, Short-term F1 and Support 1. The Long-term rating Outlook is Stable, stated a press release.
KIB's ratings are based on the support available from its direct parent, Kommunalkredit Austria (KA), which is rated AA-. KIB is 100 percent-owned by KA and is closely integrated with its parent. In turn, KA's Long-term rating benefit from the support from its shareholder, Dexia Credit Local, rated AA+. KIB's close integration with KA also means that Fitch has not assigned an Individual rating to KIB.
The bank was set up by KA in July 2002 and is an integral part of KA's international expansion strategy. KIB carries out the group's international lending business in investment-grade rated countries in Western Europe, Cyprus, Greece, the Balkans and the Baltic countries, as well as other countries not covered by its parent.
Like its parent, KIB is primarily focused on public sector finance, mainly municipalities, via participation in syndication, but is also an active player in the bond, asset-backed securities and credit derivatives markets.
KIB's credit, market and operational risk management is integrated into KA's, and KIB operates under group limits.
Management expects strong business growth in the next few years, in line with KA's strategy to expand outside its home market. In Austria, KA is the main provider of financing to local authorities. KIB's head office is in Limassol, Cyprus, and it had 10 staff at end-2003. — (menareport.com)
© 2004 Mena Report (www.menareport.com)