Moody’s af­firms Gulf Bank’s sta­ble out­look and solid rev­enue-gen­er­at­ing ca­pac­ity

Kuwait Times - - BUSINESS -

Moody’s in­vestor Ser­vice has af­firmed Gulf Bank’s sta­ble out­look and solid rev­enue-gen­er­at­ing ca­pac­ity in a credit opin­ion is­sued this week. Moody’s said that Gulf Bank’s stand­alone Base Line Credit As­sess­ment (“BCA”) rat­ing re­flects its solid rev­enue-gen­er­a­tion ca­pac­ity, com­fort­able liq­uid­ity met­rics, and ad­e­quate cap­i­tal­iza­tion.

In its lat­est semi­an­nual credit opin­ion up­date, Moody’s rec­og­nizes the com­pet­i­tive­ness of Gulf Bank’s risk man­age­ment sys­tems and prac­tices de­ployed by its man­age­ment that have en­hanced the Bank’s con­trol of the loan port­fo­lio credit risk. Moody’s also af­firmed Gulf Bank’s sta­ble de­posits out­look. This re­flects the bal­ance be­tween ad­e­quate cap­i­tal and pro­vi­sion­ing buf­fers to­gether with a re­duc­tion in prob­lem loans.

Moody’s said that Gulf Bank’s BCA is sup­ported by its strong macro pro­file. In ad­di­tion, the prob­lem loans lev­els have come down to 2.7 per­cent of gross loans and pro­vi­sion cov­er­age is up to 276 per­cent at yearend 2015.

Moody’s af­firmed the fol­low­ing rat­ings of Gulf Bank; Out­look is Sta­ble, Bank De­posits at A3/P-2, Base­line Credit As­sess­ment at ba1, Ad­justed Base­line Credit As­sess­ment at ba1 and Coun­ter­party Risk As­sess­ment at A2(cr)/P-1(cr).

Gulf Bank has con­sis­tently been awarded out­stand­ing credit rat­ings in Kuwait by the ma­jor in­ter­na­tional rat­ing agen­cies, Moody’s, Stan­dard & Poor’s and Fitch Rat­ings.

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