Moody's confirms Gulf International Bank's standalone, long-term deposit, and short-term ratings
The international credit rating agency Moody’s Investors Service (Moody’s) recently confirmed Gulf International Bank's (GIB) standalone baseline credit assessment, long-term deposit and short-term ratings.
The Moody's rating committee confirmed GIB’s Prime-2 short-term rating and Baa1 long-term deposit rating, while changing the outlook to negative from ‘on review for downgrade’. The bank’s standalone baseline credit assessment was also confirmed unchanged at ba1. This completed Moody’s rating action following the placement of the bank’s ratings under review for downgrade on 7th March 2016.
The confirmation of the ratings was driven by Moody’s view that “the bank’s standalone profile will remain resilient despite the challenging environment, given the bank’s strong asset quality metrics, and capital and liquidity buffers”. In their press release, Moody’s stated that “GIB’s asset quality profile is strong and has been on an improving trend”. Other factors that contributed to the confirmation of the ratings were the capital, and the funding and liquidity profiles of the bank.
Mr. Abdulaziz A. Al-Helaissi, GIB's Chief Executive Officer, commenting on the outcome of the rating review, stated: "The confirmation of the long-term deposit rating at Baa1 is a very positive outcome in the current circumstances, at a time of downward pressure on bank ratings. The confirmation of the standalone baseline credit assessment, without shareholder support, is a reaffirmation of GIB’s fundamental financial strength and risk appetite. It is also a validation of the actions taken to transform the bank through the adoption of a new business strategy to be a pan-GCC universal bank”.