Mubasher: Standard & Poor's (S&P) affirmed Burgan Bank’s long-term credit rating at BBB+, with a stable outlook.

The rating reflects the lender’s excellent banking services for companies and its capability to generate revenue, according to a statement to Boursa Kuwait on Wednesday.

Burgan Bank’s disclosure to relevant parties, the greater focus on lending, and business in high-risk countries, except Kuwait, make the Kuwaiti bank’s assets be at risk, S&P added.

S&P further noted that the long-term relationship between Burgan Bank and relevant parties is a positive factor.

The New-York based rating agency stated that Burgan Bank’s long-term rating is three notches higher than Stand-Alone Credit Profile (SACP).

Burgan Bank’s rating highlights the diversified financing portfolio, adequate capital, and liquidity.

On the other hand, the rating also shows negative factors, including the bank’s focus on balance sheet, large disclosures to related parties, and implementing large-scale business operations abroad.

In 2018, Burgan Bank’s profits increased by 26.6% to KWD 82.6 million, from KWD 65.2 million a year ago.

By the end of March, the Kuwaiti lender’s shareholders approved distributing 12% of its capital at 12 fils per share as cash dividends for the full fiscal year 2018.