Moody's Investors Service has assigned counterparty risk assessment of A1(cr)/Prime-1(cr) for Kuwait Finance House (KFH).

CR assessments are opinions of how counterparty obligations are likely to be treated if a bank fails, and are distinct from debt and deposit ratings, in that, they consider only the risk of default rather than expected loss and apply to counterparty obligations and contractual commitments rather than debt or deposit instruments.

The CR Assessment is also an opinion of the counterparty risk related to a bank's covered bonds, contractual performance obligations (servicing), derivatives (e.g., swaps), letters of credit, guarantees and liquidity facilities.

Furthermore, the CR Assessment takes into account the issuer's standalone strength as well as the likelihood of affiliate and government support in the event of need, reflecting the anticipated seniority of these obligations in the liabilities hierarchy. The CR Assessment also incorporates other steps authorities can take to preserve the key operations of a bank should it enter a resolution.