Moody’s Investors Services has assigned Baa3 and Prime-3 as long and short-term deposit ratings to United Gulf Bank B.S.C., Bahrain (UGB). It also assigned a D financial rating to the Bank. All ratings carrying stable outlooks.
In its press release issued on June 14, 2006, Moody’s said “UGB is a Bahrain-based investment bank with plans to transform into a regional universal bank. It offers investment banking services from its head office in Bahrain and through its wealth management and advisory subsidiary KAMCO in Kuwait and its brokerage investment company United Gulf Bank Securities Company in Bahrain. UGB also offers limited commercial banking facilities from Bahrain and more extensively, through its commercial banking network in Jordan (through its associate, Jordan Kuwait Bank), Tunisia (through its subsidiary, Tunis International Bank), Algeria (through its subsidiary, Algeria Gulf Bank) and Iraq (through its associate, Bank of Baghdad). UGB also manages a diversified portfolio that includes core investments in subsidiaries and associates, private equity portfolio in the Middle East, the United States and Europe, and equities quoted on the GCC and International markets.”
“Commenting on Baa3/Prime-3 long-and short term-deposit ratings, Moody’s points to the availability of support from shareholders. UGB is majority-owned by Kuwait Projects Company (KIPCO), a major Kuwaiti investment holding company with interests in financial services, media and telecommunications companies, primarily in the MENA region.”
UGB Chief Executive officer William Khouri commenting on the investment grade rating by Moody’s, said “We are very delighted to have been assigned an investment grade rating by Moody’s. This has followed the upgrade of our long term rating to BBB+ by Capital Intelligence” “The investment grade rating by Moody’s underpins the consistently improving performance of UGB over the past five years, with US$ 81 million as the record profit earned in 2005, 87 percent more than 2004,” he added.
UGB, the investment banking subsidiary of Kuwait Projects Company (Holding) (KIPCO), manages a regional network of investment / asset management companies and commercial banks. Its proprietary investment include assets in real estate, telecommunications, private equity, structured products and quoted securities. Assets under management exceed US$ 5.4 billion. UGB’s core subsidiaries and associates include: Algeria Gulf Bank, Al-Dhiyafa Investment Company, Bank of Baghdad, Jordan Kuwait Bank, KIPCO Asset Management Co. (KAMCO), Manafae Investment Company, Tunis International Bank, United Gulf Bank Securities Company, United Cable Company, United Industries Company, United Real Estate Company, United Medical Services Company and United Warehousing & Cooling. It has recently been granted a license by Qatar Financial Centre for its new assets management subsidiary, United Gulf Financial Services Company in Doha, Qatar and by the Central Bank of Syria for establishing a full commercial bank in Syria – Syria Gulf Bank. UGB and its subsidiary KAMCO have a proven track record of successful investment banking activities including corporate finance advisory, new issue placement and underwriting, mergers and acquisitions, bond issuance and investment product structuring and placement.
KIPCO is one of the leading diversified operating holding companies in the Middle East and North Africa with more than US$ 15 billion under management or control. Its shares are among the most actively traded on the Kuwait Stock Exchange. It has substantial ownership interests in portfolio of 55 companies, operating throughout the region and internationally in two major business sectors: financial services and media and telecommunications. KIPCO has recently been assigned an investment grade rating by Standard & Poors.
