...Institutional Support Drives IDRs: Ahli United Bank BSC's (AUB) IDRs and Support Rating reflect the high probability of support from its core shareholder, the Public Institution for Social Security (PIFSS), an arm of the State of Kuwait (AA/Stable), which held a 17.4% stake at end- 2014. The strong links between PIFSS and AUB date back to before the creation of AUB. Also, AUB has substantial exposure to Kuwait though its Kuwaiti subsidiary, which accounts for around 30% of AUB's consolidated balance sheet, and in which PIFSS holds a 12.2% stake. Diversification Underpins Standalone Strength: AUB's operations across the Gulf Cooperation Council (GCC), specifically in Kuwait, provide the bank with greater diversification than domestic peers. Bahrain contributes less than 13% of AUB's profit, and therefore AUB is less affected than some peers by the weakening of Bahrain's economy. Kuwait is AUB's single largest market, at least from a lending perspective; almost half of the loan book consists...
