Capital Intelligence Affirms Gulf Bank’s Long-Term Forign Currency Rating at “A+” and Bond Rating at “BBB+” both with a “Stable” outlook
Kuwait, 15 July 2020: Capital Intelligence Ratings (“CI Ratings”), the international credit rating agency, has affirmed the Long-term Foreign Currency and the Short-term Foreign Currency of Gulf Bank ratings at “A+” and “A1”, respectively. At the same time, CI Ratings has also assigned to the Bank a Standalone Rating of “a-“, with a “Stable” Outlook.
On the other hand, CI Ratings has also affirmed the rating of Gulf Bank’s KWD100 million Basel III-compliant Tier 2 Subordinated Bonds at “BBB+”. The Outlook for the Bond is “Stable”.
According to Capital Intelligence Rating, both affirmations, are mainly diriven by the Bank’s well established business franchise especially in retail banking, sound loan asset quality, as well as the solid capital position and comfortable liquidity metrics. In addition, Gulf Bank has a good operating profitability, widening net interest margin and sound operating efficiency. The ratings also reflect Gulf Bank’s size as the fourth largest bank in Kuwait with a wide distribution network and a good market share of both loans and deposits in the banking sector, as mentioned by CI Ratings.
Commenting on the Capital Intelligence 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 Foreign Currency rating at “A+” and our Tier II subordinated Bond rating at “BBB+” by Capital Inteliggence Ratings.”. “This is an important acknowledgement of the Bank’s sustained improvement in asset quality and profitability, solid capital 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 Capital Intellignence Ratings recent affirmation, Gulf Bank has a Long-term Issuer Default Rating of “A+” with a “Stable” Outlook by Fitch Ratings, an Issuer Credit Rating of “A-” with a “Stable” Outlook by S&P Global Ratings, and a Long Term Deposits rating of “A3” with a “Stable” Outlook by Moody’s Investor Services.