...State Support Drives IDRs: Burgan Bank's (BB) Issuer Default Ratings (IDRs) reflect an extremely high probability of support from the Kuwaiti authorities, if needed. This considers Kuwait's strong capacity to support the banking system and its track record of supporting its domestic banks. BB's Viability Rating (VR) reflects its high risk appetite for regional and international expansion, high concentrations, tight capital ratios, weaker-than-peers' asset quality, concentrated funding profile and earnings' sensitivity to volatile markets. The VR also reflects BB's adequate regional franchise, well-managed liquidity as well as the fairly stable operating environment in Kuwait. Adequate Regional Franchise: BB's franchise benefits from the bank's local and regional networks that support its distribution capabilities, stable revenue generation including cross- border businesses and deposit collection and close relationship with its parent, Kuwait Projects Company (KIPCO). Higher-Than-Peers...
