www.zawya.com - Capital Intelligence (CI), the international credit rating agency, announced that ithas raised the Financial Strength rating of KFH-Turkey. The rating is raised to'bb+' from 'bb,' underpinned by its very sound asset quality, good capitalprofile and continued good profitability, and the support rating of '2' is affirmed.
TheLong-term Foreign Currency rating is affirmed at 'bb,' while the Short-termForeign Currency rating is affirmed at 'b,' both at the same level as thesovereign rating. All ratings carry a 'Stable' outlook. (source)
KFH-Turkey' sChairman Mohammed Al-Omar said that this positive rating highlights the bank'srobust financial status; especially after the global markets have been affectedby the, which led to weakening the performance of banks and lowered the ratingsof many banks worldwide. He added that in addition to the high ratings, strongfinancial coverage, and high growth indices, the bank has made severalachievements in its field of business, which served as milestones in its pathand presented significant fields in the Turkish market. He mentioned that thebank's achievements include the issuing of Sukuk worth USD 350 million lastyear, in light of the Turkish market's need for such issuances. Such productsalso meet the demands of investors who seek Islamic investment instruments. Hewent on to say that the Turkish parliament has adopted a legislation thatorganizes the issuance of Sukuk in Turkish Lira; especially that the Turkishmarket requires such issuances.
Moreover, the bank setup gold investment funds through the bourse, in order to meet thedemands of its clients, because Turkish people are fond of gold. This prompted the bank to present ATM machines that allow users to withdraw pieces of gold.It is worth noting that these ATM machines are the first of their kind inTurkey. He stressed that the bank will continue its efforts to expand in theTurkish market, in addition to other regional and international markets. Headded that it will shoulder its strategic role in cementing the economy andcommercial ties between Kuwait and Turkey on the one hand, and Turkey and theGCC on the other. He revealed that the bank achieved growth in its financialindices regarding profits, deposits, assets, and shareholders' equity thatranges between 25-50% per year.
Meanwhile,the bank's CEO Ufuk Iwan mentioned that KFH-Turkey was established in 1989 and KFH owns 62.5% of its shares. He added that the bank opened a branch in Germany. The bank plans to further expand in Europe. In Turkey, the bank isconsidered to be one of the biggest Islamic banks in Turkey and is planning to increase its market share from 5% to reach 10%. The bank also has 182 branchesin Turkey and has opened three branches in Bahrain, Dubai, and Iraq.
He mentionedthat the bank can offer all services and products needed by Kuwaiti investorswilling to invest in the Turkish market, and can also finance real estateacquisition in Turkey for Kuwaitis.
© Press Release 2012
Source: http://www.zawya.com/story/ZAWYA20120408061504/Capital-Intelligence-upgrades-KFH-Turkeys-rating/- April 8, 2012
