Kuwait—21 May 2017. Capital Intelligence Rating affirmed Gulf Bank's Tier 2 Subordinated Bond rating at 'BBB' in its latest Bond Rating Report. The KD 100 million Bond was issued in May 2016 and qualifies as Tier 2 Capital under the Central Bank of Kuwait (CBK) Basel III guidelines. According to Capital Intelligence, the rating remains underpinned by Gulf Bank's good and improving loan asset quality, solid capital ratios, sound liquidity and satisfactory operating profitability. "The rating also reflects the Bank's position as the second largest conventional commercial bank with a well-established domestic franchise" said Capital Intelligence.

Another main support to the rating is the Bank's solid capital ratios. Total Capital Adequacy Ratio has risen to the highest in Capital Intelligence peer group in 2016 following the issue of the bond under review. Both leverage and total capital and total assets ratio also improved to a very good level although remained behind the peer group average.

Capital Intelligence also affirmed the Outlook for the rating as 'Stable' as Gulf Bank's overall good financial metrics are likely to be maintained.