Fitch affirms Gulf Bank’s Long-Term Issuer Default Rating at ‘A’ with a Stable Outlook
‘Gulf Bank’s Issuer Default Ratings reflect potential support from Kuwaiti authorities’
KUWAIT: Fitch Ratings has affirmed Gulf Bank’s Long-Term Issuer Default Rating at ‘A’ with a Stable Outlook. Fitch has also affirmed the Bank’s Viability Rating (VR) at ‘bbb-‘.
According to the recently published Fitch Ratings commentary, Fitch stated that: “Gulf Bank’s Issuer Default Ratings reflect potential support from the Kuwaiti authorities, as reflected in its Government Support Rating (GSR) of ‘a’.” Fitch also added in their commentary: “Gulf Bank’s Viability Rating (VR) reflects its good domestic franchise, cautious risk approach, healthy loan quality, good capitalization and stable funding despite high deposit concentration. The VR also considers modest, but improved profitability, and high loan concentrations, albeit similar to peers.”
The Stable Outlook on Gulf Bank’s Long-Term Issuer Default Rating reflects that on the Kuwaiti sovereign rating.
Commenting on Fitch’s credit rating announcement, Dalal Al-Dousari, Gulf Bank’s Deputy General Manager of Investor Relations said: “We are very pleased to receive the affirmation of our Bank’s Long-Term Issuer Default Rating at ‘A’ with a ‘Stable’ outlook by Fitch Ratings. This is an international acknowledgement of Gulf Bank’s good domestic franchise, healthy loan quality and stable funding.”
Gulf Bank continues to be well recognized in terms of its credit worthiness and financial strength internationally as it is rated ‘A’ by three major credit rating agencies. In addition to Fitch Ratings’ recent affirmation of Gulf Bank’s Long-Term Issuer Default Rating at ‘A’ with a Stable Outlook, Gulf Bank has a Long-term Foreign Currency Rating of ‘A+’ with a ‘Stable’ Outlook by Capital Intelligence Ratings and a Long-Term Deposits rating of ‘A3’ with a ‘Positive’ Outlook by Moody’s Investor Services.