Mubasher: Fitch Ratings has affirmed Warba Bank’s Long-Term Issuer Default Rating (IDR) at 'A+', with a stable outlook, according to a bourse statement released on Wednesday. The rating agency also affirmed the bank’s Viability Rating (VR) at 'bb-'.

The Boursa Kuwait-listed bank’s IDRs support rating and support rating floor reflect a high likelihood of receiving support from the Kuwaiti authorities, which is provided to all domestic banks when needed, Fitch said.

“Fitch's expectation of support from the authorities is underpinned by Kuwait's strong ability to provide support to domestic banks, as reflected by the sovereign rating and a strong willingness to do so irrespective of the bank's size, franchise, funding structure, and level of government ownership,” the rating agency added.  

Warba Bank’s recent ratings may be changed based on Fitch's assumptions regarding the Kuwaiti authorities' ability to support the banking sector.

Last month, Moody's Investors Service completed the periodic review of the ratings of Warba Bank and other associated ratings.

Moody’s placed the rating of the bank’s Counterparty Risk Rating at ‘Baa1/P-2’, with a stable outlook.