...Support-Driven IDRs: Industrial Bank of Kuwait's (IBK) ratings reflect an extremely high probability of support from the Kuwaiti authorities if required. Fitch Ratings' view of support considers the ability and propensity of Kuwait (AA/Stable) to provide support to IBK given the bank's large state direct ownership (49%), key development mandate and reliance on government funding. Kuwait also has a record of supporting its banking sector. Unique Company Profile in Kuwait: IBK's Viability Rating (VR) is highly influenced by its company profile as Kuwait's sole development bank. IBK's primary focus is the provision of concessionary medium- and long-term financing for the establishment, expansion and modernisation of private-sector industries. The bank also provides commercial banking, mainly working capital. Therefore, its risk profile differs from that of commercial banks. Nevertheless, IBK is not immune from concentration risk. Operating Environment Affects Business: The domestic operating...
