Fitch Rates Industrial Bank of Kuwait IDR 'A'; Outlook Stable.LONDON -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has today assigned ratings to Industrial Bank of Kuwait The Industrial Bank of Kuwait was established in 1973 in the State of Kuwait by the Ministry of Finance, Central Bank of Kuwait and other large local industrial firms. Their primary objective is to nurish the local industry. External links
The Issuer Default, Short-term and Support ratings of IBK IBK see infectious bovine keratoconjunctivitis. reflect the extremely high probability of support from the government of Kuwait, should it be required. The Individual rating reflects the bank's strong capitalisation, low cost of funding, stable profitability and adequate asset quality. It also reflects the bank's modest franchise and restricted activities. IBK is a Kuwaiti development bank providing subsidised medium- to long-term finance to the Kuwaiti industrial sector since inception, and commercial banking services to the industrial sector since 1989. The bank's licence restricts it to lending only to counterparties holding industrial licences issued by the Public Authority for Industry. IBK is strongly capitalised; the Tier 1 and the total capital ratios were 46% and 72% respectively at end-2005. Funding is mainly from the government of Kuwait in the form of a KWD KWD In currencies, this is the abbreviation for the Kuwaiti Dinar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 200 million long-term loan, providing IBK with a low cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. . Operating profit in 2005 increased 83%, driven by higher net interest income as margins widened on higher interest rates, as well as lower impairment charges. Asset quality is adequate; impaired loans were 7% of gross loans at end-2005, mainly due to four impaired loans; one is pre-invasion and the other three are fully covered by collateral or reserves. IBK was established in 1973. The government of Kuwait retains 49% direct ownership and 12% indirect ownership; the balance is split between local financial institutions and industrial companies. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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