Moody’s reaffirms GIB’s rating

The international credit rating agency Moody’s Investors Service has recently reaffirmed Gulf International Bank’s (GIB) long-term and short-term foreign currency deposit ratings of A3 and P-2 respectively. The Bank’s standalone financial strength rating has also been reaffirmed. Moody’s emphasised in its ratings report that GIB’s solid capital base, asset quality and the improvement of its funding profile have contributed to the reaffirmation of these credit ratings. Moody’s explained in its report that “recent improvements in Gulf International Bank’s asset quality reduce downward pressure on the ratings. The Bank’s asset quality metrics have improved following a reduction in the ratio of non-performing loans.” The agency added that the outlook on the ratings can improve over the next few quarters as a result of continued asset quality improvements and the successful implementation of GIB’s new strategy and business model. Moody’s also indicated that GIB’s “ownership by the Saudi government (Aa3 stable) is a key factor in the Bank’s standalone credit strength as it supports business origination and enables the Bank to adopt cost effective borrowing strategies.” Jammaz Bin Abdullah Al-Suhaimi, GIB’s Chairman, commented: “We are pleased with Moody’s reaffirmation of the Bank’s ratings and regard it as an independent endorsement of GIB’s successful efforts to strengthen its financial position.” From Gulf Today