IslamicFinance.de

Capital Intelligence (CI) has announced that it has affirmed the Financial Strength Rating (FSR) of Kuwait Finance House (KFH) of 'BBB+'. The rating is supported by KFH's dominance of the Islamic banking sector in Kuwait, as well as its large overall market share in both deposits and loans, and by the significantly improved equity base following the June 2013 rights issue. The rating is constrained by a less than satisfactory asset quality in terms of headline non-performing facility ratio and reserve coverage, and by poor profitability at the net level. Looking ahead, the growing international component of both revenues and balance sheet is likely to eventually become a supporting factor.