OREANDA-NEWS. Fitch Ratings has assigned Burgan Senior SPC Limited's (BSPC) USD1.5bn EMTN programme 'A+'/'F1' ratings.

KEY RATING DRIVERS

BSPC is special purpose company wholly owned by Burgan Bank (Burgan, A+/F1/Stable), set up solely for the purpose of issuing notes under the programme. The proceeds of the notes will be solely used for Burgan's general corporate purposes.

The ratings of BSPC's programme are aligned with Burgan's Long - and Short-Term Issuer Default Ratings (IDR) based on Fitch's belief that Burgan will support any debt issued under the programme, if required.

Fitch notes that Burgan has provided an unconditional and irrevocable guarantee for payment of all amounts due in respect of the notes.

The ratings apply only to the issuance of senior unsecured notes and represent senior programme ratings. Not all notes under the programme will be rated.

RATING SENSITIVITIES

The programme's ratings are sensitive to changes in Burgan's Long - and Short-Term IDRs. These in turn are sensitive to changes in the perceived ability or willingness of the Kuwaiti authorities to provide extraordinary support to the bank if required. At present, Fitch considers the likelihood of any change to be small.

Established in 1975, Burgan is a leading full service commercial bank in Kuwait. Listed on the Kuwait Stock Exchange, the bank's largest shareholders are Kuwait Projects Company (Holding) K. S.C/KIPCO with 41.2%, United Gulf Bank BSC with 15% and Public Institute for Social Security with 7.7%. Subsidiaries include Burgan Bank A. S. Turkey, Gulf Bank of Algeria S. A. and Bank of Baghdad P. J.S. C. The bank also has a controlling interest in Tunis International Bank S. A. (TIB) and a strategic stake in FIMBank, an international trade finance specialist bank in Malta.