...Sovereign Support Drives IDRs: National Bank of Kuwait's (NBK) Issuer Default Ratings (IDRs) reflect an extremely high probability of support from the Kuwaiti authorities if needed. This is underpinned by Kuwait's strong ability to provide support, as reflected by its `AA' rating, combined with Fitch Ratings' belief that there would be a strong willingness to do so. Sovereign support also considers NBK's status as the flagship bank in Kuwait and close business and strategic links with the state. NBK's Viability Rating (VR) reflects its solid company profile, which supports its revenue generation capacity and ability to finance better-quality assets than peers. It also considers strong management, consistent strategy and a solid funding profile, as well as high borrower concentration and declining core capital ratios. Tougher Operating Environment: The domestic operating environment is not immune to falling oil prices but pressure will be partially offset by rising government spending as...
