What Do You Think Of Kuwait Finance House (KFH) Decision To Drop RAM's Rating Services?

I was reading the following article on Star Business: KFH decision to drop RAM sparks speculation

• Kuwait Finance House (M) Bhd’s (KFH) decision to discontinue the rating services by RAM Ratings Sdn Bhd has caused industry observers to speculate about the bank’s motives.
  
  An analyst from a local bank-backed brokerage said one reason for KFH’s decision could be because it was not satisfied with the way it had been rated. “On the other hand, it could mean KFH wants to reorganise itself and resolve certain matters before being rated again,” he said....

It does appear that KFH was not satisfied with the way it had been rated.

In April 2010..

• RAM issued a note putting the bank on what it called a “negative rating watch” in connection to the on-going due diligence status audit.

The news article ends with..

• In November 2009, RAM put a negative outlook on the financial institution ratings of KFH, based on the deterioration in the financial metrics of both the bank and its parent.
  Last year, KFH aborted two property finance investments – the en bloc purchase of The Icon@Tun Razak for RM237mil from Mah Sing Group Bhd and the en bloc acquisition of Menara YNH, in Jalan Sultan Ismail, Kuala Lumpur, from YNH Property Bhd for RM920mil.

So the obvious question is whether RAM had been unfair to KFH with its ratings?

Here's an interesting article Kuwait Finance House not out of the woods‎

• Kuwait Finance House not out of the woods
  Sarmad Khan
  
  Last Updated: May 27. 2010
  
  The problems are mounting for the largest Sharia-compliant lender in Kuwait.
  
  The asset quality and profitability of Kuwait Finance House (KFH) has “materially deteriorated”, the ratings agency Standards & Poor’s (S&P) says.
  
  In a note late on Wednesday, S&P placed an “A minus” long-term rating on KFH, “with negative implications”.
  
  “The rating action reflects our view that the material deterioration of asset quality indicators and reduced revenue-generating capability, linked to the bad performance of equity and real estate markets, have negatively affected KFH’s financial profile,” said Nicolas Hardy, a credit analyst with S&P.
  
  Many regional lenders such as KFH invested heavily in local equity markets and had huge direct and indirect exposure to a once red-hot property market through their investment subsidiaries and direct holdings.
  
  But the value of those investments has dropped greatly, putting considerable stress on the banks’ balance sheets.
  
  This has prompted ratings actions from agencies such as S&P that increase the risk profile of these lenders and the cost they have to pay to raise funds.
  
  On the plus side in KFH’s case, the bank is still a leader in Kuwait’s Islamic finance sector and has adequate capitalisation, good financial flexibility and strength from significant government support.
  
  Mr Hardy said S&P would analyse in detail the bank’s exposures to the property and construction sectors, and the performance of the bank’s operations and activities outside of Kuwait.
  
  The agency will pay special attention to KFH’s banking subsidiaries in Turkey and Malaysia before it resolves the negative rating.
  
  Shares of KFH, the second largest lender in the country by market value, yesterday gained 2 per cent to 1.020 dinars but they are more than 21 per cent lower than their 12-month peak in June last year.

Apparently S&P also agreed with RAM's assessment.

How?

Don't you think it's crazy that KFH drops RAM rating services because it was not satisfied with the rating given?

KFH's parent, KFIN, has not been doing well as a stock.

Saw this older clip (May 14, 2010) on Star Business: Allowances hit KFH results

• KUALA LUMPUR: The Kuwait Finance House (M) Bhd group recorded a net loss of RM30.9mil for the year ended Dec 31, 2009, due to higher allowances and impairment for losses on financing of RM184.7mil.
  
  It said in a statement that revenue continued to hold up well at RM485mil. Comparative figures for revenue and profit were not provided. However, it said, total assets grew 20.1% to RM11.6bil