Moody’s affirms Gulf Bank’s A3 rating and ‘Stable’ outlook
KUWAIT: Moody’s investor Service has affirmed Gulf Bank’s stable outlook and solid revenue-generating capacity in its recently published credit opinion issued on October 18,
2017. Moody’s said that Gulf Bank’s standalone Base Line Credit Assessment rating reflects its solid revenue-generation capacity, comfortable liquidity metrics and adequate capitalization.
Moody’s also affirmed Gulf Bank’s “”A3” long-term deposits rating and “Stable” outlook. “This reflects the balance between adequate capital and provisioning buffers together with a reduction in problem loans.” said Moody’s.
Moody’s mentioned that Gulf Bank’s Base line credit assessment is supported by its strong macro profile. In addition, the problem loans levels have come down to 2.5 percent of gross loans and provision coverage is up to 331 percent at yearend 2016.
Moody’s added that Gulf Bank has a stable deposit base supported by comfortable liquidity buffers with a very high probability of government support in case of need Commenting on the Moody’s credit opinion update, Dalal Al-Dousari, Gulf Bank’s Assistant General Manager of Investor Relations said: “Gulf Bank continues to enjoy favorable ratings from the top international credit rating agencies. On October 18, 2017, Moody’s Investors Service Affirmed the bank’s “A3” long-term deposits rating and “Stable” outlook. In addition Fitch Ratings has recently 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. In June 2017, S&P Global Ratings revised their outlook on the Bank to “Positive” from “Stable” and affirmed its issuer credit rating at “A-”. Furthermore, Capital Intelligence also affirmed the Bank’s Financial Strength Rating at “BBB+” and the subordinated bond rating at “BBB” both with “Stable” outlooks in May 2017.”