Capital Intelligence Upgrades Gulf Bank’s Financial Strength Rating to 'A-'

Capital Intelligence Ratings, the international credit rating agency, has recently announced that it has upgraded the Financial Strength rating of Gulf Bank to “A-” from “BBB+”. “The rating upgrade is supported by the sound and sustained improvement in the Bank’s loan asset quality, the solid capital and good liquidity positions”, Said Capital Intelligence in its recently issued report. The rating also reflects, “Gulf Bank’s well established domestic franchise and in particular its strength in the retail sector” according to Capital Intelligence. Gulf Bank’s Financial Strength and Foreign Currency outlook are now both revised to “Stable” from “Positive”. The Long-Term and Short-Term Foreign Currency Ratings have also been upgraded to ‘A+’ and ‘A1’ from ‘A’ and ‘A2’, respectively.

Bond Rating

In addition to Bank Financial Strength rating upgrade, Capital Intelligence has just announced the upgrade of Gulf Bank’s KD 100 million Tier II Subordinated Bond ratings from “BBB” to “BBB+” with a “Stable” outlook.

Commenting on the Capital Intelligence credit rating announcement, Ms. Dalal Al-Dousari, Gulf Bank’s Assistant General Manager of Investor Relations said:” We are proud to announce the upgrade of Gulf Bank’s Financial Strength rating this year, from “BBB+” to “A-“. With this recent upgrade, Gulf Bank is now rated “A” by all four leading credit rating agencies”. “The upgrade is an affirmation of Gulf Bank’s sustained improvement in loan asset quality matrices, solid capital and sound liquidity position.” Added Al-Dousari.

"Gulf Bank continues to be well recognized in terms of its credit worthiness and financial strength internationally”. Said Al-Dousari. In addition to Capital Intelligence recent upgrade, S&P Global Ratings revised their outlook on the Bank to “Positive” from “Stable” and affirmed its issuer credit rating at “A-“ in June 2017. Similarly, Fitch Ratings has upgraded Gulf Bank’s viability rating from “bb” to “bb+” and affirmed the bank’s Long-Term Issuer Default Rating at 'A+' with a “Stable” Outlook. Moody’s Investors Service on the other hand, affirmed the Bank’s “A3” long-term deposits rating and “Stable” outlook in May 2017.