Kuwait, 08 September 2020: 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 at 'bb+'.

According to the recently published Fitch Ratings commentary, Gulf Bank has a good franchise in Kuwait, both in retail and corporate banking. The large branch network and good brand support the Bank's distribution capabilities. The Bank has a competent management team, which is highly experienced in local and regional banking, with a good record of strategy implementation in Kuwait. The Stable Outlook on Gulf Bank’s Long-Term Issuer Default Rating reflects that of the Kuwaiti sovereign rating, said Fitch.

Fitch Ratings said in their commentary that Gulf Bank’s impaired loans ratio has been improving in the past five years, owing to write offs of legacy exposures and low generation of problem loans, and compares well with peers. Fitch stated that Gulf Bank has demonstrated stability in core earnings and profitability in the past five years, owing to higher net interest margins, stable cost-to-income ratio and lower loan impairment charges.

Commenting on Fitch’s credit rating announcement, Ms. Dalal Al-Dousari, Gulf Bank’s Head 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 franchise, adequate capitalization, experienced management and sound liquidity position.” Added Al-Dousari.

Gulf Bank continues to be well recognized in terms of its credit worthiness and financial strength internationally as it is rated “A” by all four leading credit rating agencies. In addition to Fitch Ratings’ recent affirmation, Gulf Bank has a Long-term Foreign Currency Rating of “A+” with a “Stable” Outlook by Capital Intelligence Ratings, an Issuer Credit Rating of “A-” with a “Negative” Outlook by S&P Global Ratings, and a Long Term Deposits rating of “A3” with a “Stable” Outlook by Moody’s Investor Services.