...Support Driven IDRs: All Kuwaiti banks' Long-Term Issuer Default Ratings (IDRs), Support Ratings and Support Rating Floors (SRFs) are driven by an extremely high probability of support from the Kuwaiti authorities if required. This is underpinned by Kuwait's (AA/Stable) extremely strong sovereign balance sheet and track record of support. Most VRs in `bb' Range: Most Viability Ratings (VRs), which reflect standalone strength, are in the `bb' range due to either a weak company profile or modest financial metrics. National Bank of Kuwait's (NBK) VR of `a' reflects its flagship status and dominant franchise relative to peers. Therefore, its company profile has a higher influence on its VR than peers. Larger Projects Ahead: Capital spending has picked up with several large government sponsored projects being financed by the banks over the past year. Despite lower oil prices, we expect public spending to remain high and translate into improving operating conditions for the banks. For the Fitch...
