S&P affirms NBK’s A+/A-1 ratings with a Stable outlook

Standard & Poor’s, the international credit rating agency, affirmed yesterday the long term and short term counterparty credit ratings of NBK at A+/A-1, with a Stable outlook. The affirmation of NBK’s ratings were constrained by the weakened economic environment domestically and the geopolitical unrest in the regional markets. On a positive note, the ratings reflect NBK’s strong track record of resilient performance, its leading market position and its clear strategic direction. 

The rating agency highlighted in its recently released report that NBK’s ratings are supported by the bank’s leading commercial position in its domestic market and its sound pre-provision earnings capabilities. S&P made a special emphasis on NBK’s strong capitalization which the rating agency views as high by international standards and expects it to continue to underpin NBK’s financial profile. 

Standard and Poor’s also added that NBK, with its leading position in the domestic market, is expected to focus primarily on opportunities that government projects are likely to provide over the medium term and to leverage its controlling 47% stake in Kuwaiti Islamic lender Boubyan Bank to offset any growing competition.