THE international credit rating agency Capital Intelligence (CI) has reaffirmed Gulf International Bank's (GIB) long-term and short-term Foreign Currency Ratings at “A” and “A1” respectively. The bank's Financial Strength Rating is also maintained at “BBB+.” All ratings have been assigned a Stable outlook. The short-term rating of “A1” is the highest rating granted by Capital Intelligence. The “A1” short-term rating is defined by the agency as reflecting superior credit quality and the highest capacity for timely repayment of short-term financial obligations that is extremely unlikely to be affected by unexpected adversities. In a statement, the rating agency stated that GIB's exceptionally strong and supportive ownership remains a key ratings driver and accordingly the Support level of ‘1' was affirmed. CI said the ratings reflect GIB's “solid capital adequacy, strong liquidity, diversifying sources of funds, and sound asset quality, noting that the bank's strong capital position provides a well-founded basis for expansion, ongoing investment in retail banking and a strong buffer against eventualities.” Capital Intelligence said the bank's liquidity has “remained strong, with liquid assets held largely in the form of short-term bank placements and to a lesser extent, high rated debt securities. Sources of funding continued to diversify and concentration risks are improving.” In addition, “funding risks have reduced as a result of actions taken in recent years to lengthen the maturity profile of liabilities and to reduce maturity mismatches.” Dr. Yahya A. Alyahya, GIB's Chief Executive Officer, said: “The reaffirmation of the Bank's ratings is very pleasing. We regard this as a clear endorsement of our business strategy and the actions we have taken to restructure the Bank over the last four years.” He added “the bank's efforts to deleverage and de-risk the balance sheet have significantly strengthened GIB's financial position and enhanced its capital adequacy ratios. This has created a strong foundation upon which the new retail bank can be developed.” GIB's primary shareholder is the Public Investment Fund of Saudi Arabia. It provides client-focused, innovative financial products and services to a wide customer base in the region, including asset management, IPOs, private equity placement, mergers and acquisitions, sukuk/bond issues and Shariah-compliant banking services. — SG
