Moody’s Investors Service has affirmed the credit ratings of Kuwaiti financial institution Warba Bank, maintaining a stable outlook across all ratings. The decision, announced on June 24, reflects the bank’s solid financial position, operational efficiency, and sustained growth prospects amid ongoing regional and global market challenges.
The key ratings confirmed include a long-term deposit rating of Baa1, counterparty risk ratings (CRR) of A3/P-2 for both local and foreign currency, as well as a baseline credit assessment (BCA) and adjusted BCA of ba2. Moody’s highlighted the bank’s long-term deposit rating benefits from a strong likelihood of systemic government support, given Warba Bank’s significant role in Kuwait’s Islamic banking sector.
The rating agency noted Warba Bank’s robust standalone credit profile, citing solid capitalization and an ability to absorb potential financial shocks. These strengths are underpinned by stable asset quality and the continued accumulation of precautionary provisions. Moody’s emphasized the bank’s conservative credit policies and effective risk management framework as key factors in maintaining stable financial metrics despite economic volatility affecting various sectors.
Warba Bank’s liquidity profile was also recognized as robust, with a stable funding structure supported by a resilient core deposit base. This liquidity position provides a buffer against potential funding stresses and enables the bank to pursue future credit and investment opportunities.
Shaheen Hamad Al-Ghanem, Chief Executive Officer of Warba Bank, welcomed the rating affirmation, noting that it reflects confidence in the bank’s financial strength and resilience. He reaffirmed the institution’s commitment to prioritizing asset quality alongside maintaining strong capital and liquidity positions. Al-Ghanem also highlighted ongoing efforts to enhance operational efficiency and adhere to international risk management and corporate governance standards. These initiatives, he said, are designed to support Kuwait’s local economy and generate long-term value for stakeholders.
Warba Bank is a leading Islamic bank in Kuwait, known for its focus on Sharia-compliant digital banking solutions. With one of the largest shareholder bases in the country, the bank continues to develop innovative financial products and services, reinforcing its status as a digitally focused financial institution.