Moody's assigns A1/P-1 LC ratings to Al Ahli Bank of Kuwait

Both ratings have a stable outlook and
pertain solely to deposits denominated in Kuwaiti dinars. The bank's existing A1/Prime-1 foreign currency deposit ratings and D+ financial strength rating are affirmed, also with stable outlook.

According to Moody's, the A1 long-term local currency deposit rating assigned to ABK reflects not only the bank's intrinsic financial strength
but also the high likelihood of support from the Kuwaiti government in the unlikely event of need and it is therefore significantly higher than
would normally be assigned to a D+ rated institution in the absence of such support.

Moody's acknowledges a number of recent improvements in the bank's financials, including: (i) robust profitability supported by enhanced net interest margins, higher non-interest income and continued improvements in cost efficiency; (ii) excellent and improving asset quality supported by very high provision cover; (iii) healthy capitalisation levels; and (iv) comfortable liquidity.

The rating agency also notes that the moderate concerns highlighted in previous years as a result of the bank's long delays in appointing a CEO have been removed as ABK has recently recruited Colin Plowman (former managing director at Barclays Cairo) to head the bank.

Headquartered in Kuwait City, Al Ahli Bank of Kuwait reported total assets of KWD2.157 billion (USD7.421 billion) as of 30 June 2006.