Fitch Ratings on June 11 assigned KCB Group PLC and unit KCB Bank Kenya Ltd. long-term issuer default ratings of B+ and national long-term ratings of AA(ken), with stable outlooks.
The agency also assigned both entities short-term issuer default ratings of B, viability ratings of "b+," and national short-term ratings of F1+(ken). KCB Group was assigned a support rating of 5 and support rating floor of No Floor, while KCB Bank Kenya was assigned a support rating of 4 and support rating floor of B+.
The issuer default ratings of KBC Group and KBC Bank Kenya are driven by their intrinsic creditworthiness, as demonstrated by their viability ratings, which in turn are influenced by a challenging domestic operating environment and reflect both entities' robust earnings and profitability and healthy funding profile. The viability ratings also take into account the group's important regional presence and its significant diversification benefits.
The stable outlooks mirror that on the Kenyan sovereign rating.
KCB Bank's support rating and support rating floor reflect a limited likelihood of support from Kenyan authorities, while the group's support rating and support rating floor reflect the agency's view that sovereign support would not extend to holding companies.
