Central Bank of Kuwait Worried About Possible Ratings Downgrade

According to AlQabas it has learned from  high level banking sources that at a meeting held 3 days ago with chief executives and general managers of local banks, Yusuf AlAbid, Head of Banking Supervision, expressed concerns that the rating agencies might downgrade some Kuwaiti financial institutions as they had done in the UAE.

He anticipated that this would not be done for new reasons, but because of the operational situation the banks in Kuwait faced.  A particular note was sounded about the banks' loan problems with investment companies.

While this isn't stated in the article, I wonder if these concerns could lead the CBK and other relevant authorities to push the TID through the FSL.  With the conclusion of GIH's restructuring, TID is highly visible.  The amount is large.  Its restructuring is still hanging.  There's unfortunate publicity - the BLOM case for one.   Lack of progress may cause the rating agencies  to "mark down" ultimate recovery and  reflect that lower value in their rating of individual lenders. From a country reputation management perspective, it is probably ideal to move this case to "implementation".    Declare it is a success. If there is  a problem it's likely to be a year or so down the road,  And for that period, TID won't be a drag on the banks or the country.