Moody's downgrades three Kuwaiti banks

Moody's Investors Service yesterday downgraded three Kuwaiti banks due to rising impairment charges and weakening credit conditions in the country over the past 12 months.

It downgraded bank financial strength rating (BFSR) of Commercial Bank of Kuwait (CBK) to C- from C and that of Al Ahli Bank of Kuwait (ABK) and Bank of Kuwait and the Middle East (BKME) to D+ from C-.

CBK's long-term global local currency (GLC) and long-term foreign currency deposit ratings were also downgraded to A1 from Aa3, respectively. The bank's short-term GLC and short-term foreign currency deposit ratings were affirmed at Prime-1. All ratings now carry a negative outlook.