2.•3•4)-02 4:49:9)11).•99.221 Group Chief Executive Officer

IJJ9nhII cflJ Kuwait Finance House

Date) 9 October 2018 • 2018 L.3-751 9 29 MuharraW 1440 • 1440 rr... 29 !cLi1311

2018/ /008 /10/10 44.4yi Rat 10 1 10 / /00$ / 2018

CEO - Bourse Kuwait 0*-01 42-199 41,11111 6$45.1t Peace, Mercy and Blessings of Allah be upon you, 4%#3<I ;la)" 11.••)L011

Subject: Disclosure of Material Information atjaa..EF .Rtaylall as 1.44141 *esti Fitch credit Rating Report -Kuveyt Turk

1414091 LPIRCji C99)1 01:4 aR93)-41+a)

In reference to the above, and in interest of Kuwait Finance House "KFH" at adhering to Chapter 4 Disclosure of Material information of CMA Executive Bylaws Book 10 (Disdosure and Transparency), KFH would like to reportthe following:

Fitch Ratings has downgraded the Long-Term Foreign-

Currency Issuer Default Ratings (LTFC IDRs) of 20

Turkish banks and their subsidiaries, Accordingly KFH•

TIES has been downgraded as follows:

Long-term Foreign currency IDR downgraded to

BB- from BB.

Long-term Local Currency IDR downgraded to BB

from BB+.

There is no impact on the KFH's Financial Position.

Attached is the Appendix (9) 'Disclosure of Credit Rating Form' that has been submitted to Capital Markets Authority.

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Best Regards,

Mazin SAL Nahedh

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9 October 2018

Kuwait Finance House (KFH)

Appendix (9)

Disclosure of Credit Rating Form

Fitch Credit Rating Report -Repay/ Turk

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Date

Name Of Listed Company

Entity Issues The Rating

9 October 2018

Kuwait Finance House (KF11)

Fitch Ratings (Special report of KUVeyt Turk)

Long-term Foreign Currency IDR downgraded to BB- from BB.

Long-term Local Currency DR downgraded to BB from BB..

BB: Speculative:

'BB' ratings indicate an elevated vulnerability to default risc particularly in the event of

adverse changes in business or economic conditions over time; however, business or

financial flexibility exists which supports the sentiong of financial commitments.

The Modifiers "ix or may be appended to a rating to denote relative status within major rating categories.

There is no impact on the Financial Position of the Parent Company (KEN- Kuwait).

Negative Outloo

Translation Of The Press Release Or Executive Summary

Fitch Ratings-London-01 October 2010: Fitch Ratings has downgraded the Long-Term Foreign-Corrency Issuer Default Ratings (LTFC IORS) of 20 Turkish banks and their subsidiaries, A full list of rating actions is available at wansfitchratinge.com. Accordingly Kuveyt Turk has been downgraded as follows:

Long-term Foreign currency 'DR downgraded to BB-Negative from BB/Nepal/a.

Long-term Local Currency IDR downgraded to BB/Negative from BB/./Negative.

The IORs, Support Ratings (SRs), FC senior debt ratings and National Ratings of these banks are driven by potential support from their shareholders. This reflects Fitch's view that the banks constitute strategically important subsidiaries, to varying

degrees, for their parents. It also considers ownership stakes. integration, the subsidiaries' roles within their respective groups and, for some, common branding.

The one-notch downgrade of the banks' LTFC IORs and FC senior debt ratings, to one notch below the level of the sovereign

LTFC IDR, reflects our view that, in case of a marked detedoration in Turkey's external finances, the risk of government

intervention in the banking sector would be higher than that of a sovereign default The banks LTLC IORs are also downgraded

by one notch to reflect intervention Asks. The Negative Outlooks on the banks' IDRs reflect those on the Turkish sovereign.

Fitch continues to view the risk of caWtal oontrols being imposed in Turkey as remote given Turkeys high dependence on foreign

capital (and ensuing strong incentive to retain market access) and the eventually orthodox policy response to recent market pressures. Nevertheless, in case of a marked deterioration in Turkeys external finances, some form of intervention in the banking

system that might impede the banks' ability to service their FC oblations would become more likely, in Fitch's view.

The downgrades of the banks' National Ratings reflect the downgrades of their LTLC IDRs.

Ratings Category

Rating Implications

Rating Effect On The Status

Of The Company

Outlook

41 iiirgruil

Kew& Mame Nesse