...Sovereign Support Drives IDRs: National Bank of Kuwait's (NBK) Issuer Default Ratings (IDRs) are driven by an extremely high probability of support from the Kuwaiti authorities (Kuwait; AA/Stable), if required. The authorities' ability to support is underpinned by an extremely strong sovereign balance sheet. The propensity of the authorities to support has been evidenced by a track record of support for the sector and considers NBK's status as the sector's flagship bank and therefore its close links to the state. NBK's Viability Rating (VR) reflects the bank's strong company profile given its leading domestic and regional franchise, as well as a diverse business model. The VR also considers the bank's solid financial profile. Kuwait's Flagship Bank: NBK's company profile has a high influence on its VR. This reflects the bank's dominant market share in Kuwait (30% of loans at end-1H14) and historical flagship status. As a result, NBK enjoys strong links to the state, even though the majority...
