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Viewing report
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Burgan Bank Jun 11
Standard & Poors, June 2011
Abstract
Resilient operating income with adequate preprovision earnings capabilities and improving provisioning coverage. Highly liquid balance sheet and strong ongoing government support on the funding side. Adequate capitalization. Relatively high level of nonperforming exposures, which have a negative impact on profitability. Risks associated with geographic expansion. Sustained reliance on government spending and funding. Still fragile economic environment, which strains asset quality and profitability metrics. The ratings on Kuwait-based Burgan Bank (Burgan) reflect Standard & Poor's Ratings Services' view of the bank's resilient operating income, which has helped in building up credit reserves against nonperforming loans; highly liquid balance sheet; systemwide funding support from the authorities; and adequate capitalization. The ratings are constrained by the bank's relatively high level of nonperforming exposures...
Companies mentioned in this report are: Burgan Bank
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
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