Moody's confirms Gulf International

Moody's Investors Service said it confirmed the Baa1 subordinated debt ratings of Gulf International Bank.

The outlook is stable. This concludes the review for further downgrade that began in January.

The confirmation was driven by reduced pressure on the bank financial strength rating, which considers the bank's improved capitalization and significantly de-risked balance sheet, following the transfer of $4.8 billion in securities to shareholders, according to the agency.

The bank now benefits from a significant capital cushion that could absorb possible loan losses during the slowdown facing borrowers in the bank's core Gulf Cooperation Council markets, the agency said.

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