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24 Ramadan 1439 Rot 10/10/ 681 0018

CEO - Boursa Kuwait

Peace, Mercy and Blessings of Allah

Subject: Disclosure of Material Information

KFH Credit Ratings Report Issued by Moody's Investors Service

In reference to the above, and in interest of Kuwait Finance House "KFH" at adhering to Article 4-1-1118 of Chapter 4 'Disclosure of Material Information of CMA Executive Bylaws Book 10 (Disclosure and Transparency), that requires the disclosure of Any credit rating for the Listed Company or any change Thereto, KFH would like to report the following:

Moody's Credit Report for KFH, included the (Al) long-term deposit rating, with (Stable Outlook) based on the bank's standalone Baseline Credit Assessment (BCA) of (bal) and the expectation of a very high likelihood of support from the Government of Kuwait (Aa2 stable), if needed. 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 Market Authority.

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Best Regards,

Mazin S Al Nabedh

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KUWAIT FINANCE 1•OUSE.I.3CP I Stale Or KLEVralt Headquarters

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Name Of Listed Company

Entity Issues The Rating

Rating Category

Date

10 June 2018

Kuwait Finance House (KEN)

Moody's Investors Service

Category To Outlook Stable Bank Deposits A1fP-1 Baseline Credit Assessment bal Adjusted Baseline Credit Assessment bal Countemany Risk Assessment A1(cr)/P-1(cr)

Rating Implications

Rating Effect On The Status Of The Company

Outlook

P Mark Issuers assessed Pnme-1(cr) have a superior ability to honor short-tern operating obligations..

bligations rated A are judged to be upper-medium grade and are subject to low credit risk. Ba: Obligations rated Ba are judged to be speculative and are subject to substantial credit risk. Note: Moodys appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category. There is no impact on the KFH's Financial Position.

Stable Outlook

Translation Of The Press Release Or Executive Summary

KFH's BCA reflects the bank's (1) strong and diversified Islamic franchise, supporting its profitability; (2) improving

asset risk, moderated by legacy investments; (3) robust capitalization; (4) continued, although reducing, reliance on

investment income; and (5) ongoing divestment of legacy exposures as part of a restructuring plan.

Detailed credit considerations

KFH's ratings capture the bank's diversified international operations

At Strong Islamic franchise, which supports the bank's profitability across key markets

St Improving asset risk, moderated by legacy exposures

Solid capitalPaton and liquidity vire.fitinwal•:re Kuwait Finance None

Solid margins and improving efficiency, moderated by continued, although reducing, reliance on investment

income

St Divestment of legacy exposures and execution of the restructuring plan are ongoing

2