...IDRs Driven by Sovereign Support: Commercial Bank of Kuwait's (CBK) Issuer Default Ratings (IDRs) reflect Fitch Ratings' view that there is an extremely high probability of the Kuwaiti authorities providing extraordinary support if needed. Fitch's assessment of support is based on the financial strength of `AA'-rated Kuwait, in addition to the authorities' demonstrated willingness to support the domestic banking system. VR Reflects Weak Earnings: CBK's Viability Rating (VR) reflects its relatively weak earnings and profitability, an evolving strategy, increasing risk appetite and high loan concentrations. It also reflects CBK's strong corporate franchise as well as its adequate capitalisation and healthy liquidity position. Tougher Operating Environment: The domestic operating environment is not immune to falling oil prices but Fitch believes pressure will be partially offset by rising government spending as this filters down to the wider economy. Tougher conditions in Kuwait and the region...
