International credit rating agency Fitch Ratings has reaffirmed Gulf International Bank's (GIB) long-term issuer default and short-term ratings at “A” and “F1” respectively, with a stable outlook. The agency also reaffirmed Bank's Individual Rating at “C/D” and its subordinated debt obligations at “A-.” Fitch stated in its report that GIB's ratings “reflect expected support from its shareholders, in case of need. The Individual Rating reflects the sale of most of GIB's investment securities in Q109 and the positive impact this has had on its risk profile, capitalisation and liquidity.” The agency explained that “GIB's market risk exposure has significantly reduced following the sale of most of its riskier investments as well as the curtailment of proprietary trading.” It added that it considers GIB's liquidity and capitalisation as adequate. Dr. Yahya A. Alyahya, GIB's chief executive officer, said: “We are very pleased with the ratings reaffirmation by Fitch, especially as it comes at a very challenging time for financial institutions. This is an independent endorsement of the proactive and conclusive action taken by the Bank to remove the distraction of its non-core international assets, thereby enabling the bank to focus on its successful and proven GCC focussed business strategy. We consider this positive announcement by Fitch as an endorsement of the actions taken by the Bank and its shareholders to address the challenges created by the global credit crisis”. Dr. Alyahya added: “These ratings reflect the bank's ability to withstand the unprecedented pressures caused by the international financial crisis and its commitment to continue its leading role in the region. We will continue to strengthen our franchise in the GCC states by providing sophisticated, customer-tailored products and services for the benefit of our customers”. GIB is a leading merchant bank in the Middle East with its principal focus on the Gulf Cooperation Council (GCC) states. With a proven track record spanning more than 30 years, GIB provides client-led, innovative financial products and services to a wide customer base in the region, including investment banking, capital markets debt securities, private equity, asset management, project and structured finance and Islamic banking.
