CI Ratings assigns a Standalone Rating of "a-", with a "Stable" outlook
KUWAIT: 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 KD 100 million Basel III-compliant Tier 2 Subordinated Bonds at "BBB+". The Outlook for the Bond is "Stable".
Both affirmations are mainly driven 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. 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.
In their report, CI Ratings mentioned that "The principal strength of Gulf Bank is related to its well established retail franchise, which is underpinned by a large distribution network. The Bank's universal banking business model and effective strategies have helped to maintain market share, which in turn has provided Gulf Bank with good earnings across the business cycle. Gulf Bank has a well-established comprehensive framework of Corporate Governance which is designed to balance performance and conformance."
Commenting on the Capital Intelligence 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 Foreign Currency rating at "A+" and our Tier II subordinated Bond rating at "BBB+" by Capital Intelligence Ratings.". "This is an international 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 Intelligence 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 "Positive" Outlook by Moody's Investor Services.
Gulf Bank is one of the leading conventional banks in Kuwait with total assets of KD 6 billion as of 30 June 2019. The bank provides a broad offering of consumer banking, wholesale banking, treasury, and financial services through its large network of 58 branches and more than 200 ATMs in Kuwait. The Bank was founded in 1960 and is listed on the Kuwait Stock Exchange (Boursa Kuwait) since 1984.