Gulf Bank – Issuer and Issue Ratings Affirmed with a Stable Outlook

Rating Action

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) of Gulf Bank (GB or the Bank) at ‘A+’ and ‘A1’, respectively. At the same time, CI Ratings has affirmed GB’s Bank Standalone Rating (BSR) of ‘a-’, Core Financial Strength (CFS) rating of ‘a-’ and Extraordinary Support Level (ESL) of High. The Outlook on the LT FCR and BSR remains Stable.

CI has also affirmed the issue rating on GB’s KWD50mn Basel III-compliant Tier 2 Subordinated bond at ‘BBB+’ with a Stable Outlook. The local currency bond comprises a KWD25mn Floating Rate Tranche and a KWD25mn Fixed Rate Tranche.

Rating Drivers

The two-notch uplift of the Bank’s LT FCR above the BSR is based on an ESL of High. The ESL takes into account GB’s systemic importance, the Kuwaiti government’s strong track record of providing assistance to banks in the…