Gulf International Bank − Outlook on LT FCR Revised to Negative Following Similar KSA Sovereign Action
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Ref: BH 0 1121 PBK00-01 23 March 202 1
Gulf International Bank − Outlook on LT FCR Revised to Negative Following Similar KSA Sovereign Action
Capital Intelligence Ratings (CI Ratings or CI) today announced that it has revised the Outlook on Gulf International Bank ’s (GIB) Long-Term Foreign Currency Rating (LT FCR) of ‘A+’ to Negative from Stable. The rating action follow s the revision of the Outlook on Saudi Arabia’s sovereign ratings to Negative from Stable. The change in the outlook on the sovereign’s LT FCR of ‘A+’ was driven by the weakening of the government’s fiscal position, with the Covid-19-related slump in global oil demand aggravating already significant budgetary pressures. The outlook revision also took into account CI’s expectation that government debt will increase markedly in 2020-21, albeit from a relatively low level.
The Negative Outlook for GIB’s LT FCR mirrors the…