Fitch Ratings said it has upgraded the long-term credit rating of five Kuwaiti banks, following the upgrade of Kuwait's long-term foreign currency issuer default to 'AA' from 'AA-' on September 4, with a stable outlook.

The ratings upgrades have also come after a review of all Kuwait-based banks rated by Fitch and reflect the agency's view of the Kuwait government's improved ability to provide support to the banking system, if required.

The ratings agency upgraded National Bank of Kuwait's long-term IDR to 'AA-' (AA minus) from 'A+' with a stable outlook, reflecting the highest credit rating in the GCC. Fitch upgraded NBK's short-term IDR to 'F1+' from 'F1'.

The long-term IDRs of Kuwait Finance House, Commercial Bank of Kuwait and Gulf Bank have been upgraded to 'A+' from 'A' to reflect their important domestic franchises.

The long-term IDR of Industrial Bank of Kuwait has also been upgraded to 'A+' from 'A', reflecting the bank's role in promoting the development of Kuwait's industrial sector and the bank's large government shareholding.

The IDRs of the banks with less significant franchises (Al Ahli Bank of Kuwait, Bank of Kuwait & the Middle East and Kuwait International Bank) remain unchanged.

Ibrahim Dabdoub, CEO of NBK Group, said that the rating upgrade provides a further testimony to the success of NBK's local and regional approaches and strategies.

Dabdoub said NBK has witnessed remarkable developments as well as dynamic and consistent growth during the last few years, particularly in respect of regional expansion.

During the first half of 2008, the NBK Group net profits rose to $661.3 million (KD175 million). NBK's total assets were valued at $42.4 billion (KD 11.2 billion) at the end of the first half, while shareholder equity grew to $6.1 billion (KD 1.6 billion). - TradeArabia News Service