United Gulf Bank B.S.C. – Bahrain (UGB), has announced that the international credit rating agency Capital Intelligence has affirmed UGB’s BBB+ long term rating and A2 short term rating with a Stable outlook. UGB’s Financial Strength rating has also been affirmed at BBB+ with a Stable outlook.
In its latest annual review on UGB, Capital Intelligence said that ‘notwithstanding the volatility in global financial markets, the quality of UGB’s remaining core investments remain sound. The balance sheet is well capitalized, notwithstanding the decline in the capital adequacy ratio, reflecting a policy of steady earnings retention to support investment activity. Profitability is expected to decline significantly in the current year following a rather exceptional year in 2008 reflecting the lower level of exits combined with the difficult investment market.’
Capital Intelligence said that ‘UGB’s liquidity position remains satisfactory and its ownership through KIPCO remains strong.’
Commenting on the Capital Intelligence ratings, Mr Masaud Hayat, Managing Director of UGB said: “This is a very reassuring outcome for UGB given the pressures and challenges the financial markets have been facing, and reflects UGB’s sound business strategy and good asset quality.”
UGB, the investment banking subsidiary of Kuwait Projects Company (Holding) (KIPCO), manages a regional network of investment banking and asset management companies.
