Kuwait’s NBK Ratings Lowered at Moody’s on Unrest, Credit

National Bank of Kuwait (NBK) SAK, the country’s biggest lender, had its ratings lowered at Moody’s Investors Services because of concerns about pressure on asset quality and weaker credit conditions at home.

The bank’s standalone bank financial strength rating was cut to C from C+, while the long-term global local currency and long-term foreign currency deposit ratings were reduced to Aa3 from Aa2, Moody’s said in a report today.

“The action was driven by Moody’s expectations that in 2011, NBK will experience asset quality pressure arising from its operations in countries experiencing political unrest, mainly in Egypt,” where NBK’s Al-Watany Bank of Egypt accounts for 6.1 percent of group assets, Moody’s said.