Fitch affirms A- rating for KAS BANK; outlook stable
Today, Fitch Ratings has published its Rating Action Commentary for KAS BANK. Fitch affirms KAS BANK’s A- long-term issuer default rating. The outlook is stable.
Fitch substantiates the ratings for KAS BANK with, among others, the following comments:
- Fitch expects KAS BANK to maintain critical mass in its core asset administration business. Its knowledge of local reporting and regulatory requirements enables it to provide tailor-made value-added reporting services to its customers.
- Fitch views KAS BANK's risk appetite as low. The bank is mainly exposed to operational risk while credit risk is very low.
- Outsourcing agreements are tight and comprehensive controls are in place, and further client on-boarding and upscaling will be more cost efficient.
- KAS BANK’s common equity Tier 1 ratio was 26% at end-June 2016, reflecting management’s aim to maintain the bank’s regulatory capital ratios well above regulatory requirements.
Read Fitch’s full Rating Action Commentary for KAS BANK (PDF in new window).