Moody's on May 27 upgraded Kuwait Finance House KSCP's baseline and adjusted baseline credit assessments to "baa3" from "ba1" and affirmed its long-and short-term local- and foreign-currency deposit ratings at A1/P-1.

Also affirmed were the bank's A1/P-1 long-and short-term counterparty risk ratings and Aa1(cr)/P-1(cr) long- and short-term counterparty risk assessments.

The upgrade comes as the bank managed to sustain improvements in its asset quality and earnings by reducing balance sheet risks through the disposal of noncore assets and focusing on core banking activities, according to Moody's.

The outlook remains stable, reflecting the bank's robust capitalization and liquidity, the agency added.