...State Support Drives IDRs: Kuwait Finance House's (KFH) 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. KFH's Viability Rating (VR) reflects its high risk appetite, with significant operations in more challenging and volatile markets than Kuwait and moderate but improving asset quality. The VR also reflects the bank's leading Islamic franchise, stable funding, resilient profitability and adequate capital ratios, as well as the fairly stable operating environment in Kuwait. Leading Islamic Franchise: KFH has a strong franchise as the largest Islamic bank in Kuwait and the country's second-largest bank. The geographical footprint, large branch network, diversified banking and investment services as well as strong brand recognition strengthen the bank's distribution capabilities, deposit collection...
