S&P may cut credit ratings on Kuwaiti banks

Standard & Poor’s has announced it may lower its credit ratings on five Kuwaiti banks linked to local financial companies that have been hard hit by the global financial crisis.

In the past few months, Kuwaiti investment companies have suffered more than others in the region, due to their reliance on international funding and investments in local property and stock markets that have withered.

Although large Kuwaiti banks are more protected from the effects of the crisis, some ratings agencies have been concerned that trouble among the investment companies could trigger losses. Global Investment House, one of the companies, recently defaulted on its debt.