Fitch affirms Kuwait Finance

Fitch Ratings said it affirmed Kuwait Finance House's long-term issuer default rating at A+ and short-term issuer default rating at F1.

The outlook is stable.

The ratings reflect a view that there is a high probability that the bank would receive support from the Kuwaiti authorities, if required, Fitch said.

Downside risk to the ratings is limited, the agency said.

The ratings also consider the company's dominant franchise, strong customer funding base and adequate capitalization, Fitch said, as well as its weak performance and asset quality indicators, high sector concentrations and the difficult operating environment in Kuwait.

Following a significant increase in impaired loans in late-2008, impaired loans continue to represent about 10% of the bank's financing, the agency added.

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