Moody's Investors Service has upgraded the financial strength rating (FSR) of Al-Ahli Bank of Kuwait (ABK) to D- from E+. The upgrade concludes a rating review that was prompted by changes in the bank's management and strategy that have occurred over the past 18 months. The outlook on the FSR is stable.
In its review, Moody's concluded that the changes in management and staff have resulted in improved asset quality and strategic focus within ABK. The rating agency added that improvements in collection efforts and credit management have reduced non-performing loans.
At the same time, enhanced emphasis on deposit gathering has improved the bank's deposit franchise. In addition, while an overcrowded banking market challenges the overall franchise in Kuwait, ABK's high capital ratios support further growth opportunities, in Moody's opinion. The bank recorded assets of $3.9 billion for 2001. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
