Moody's lifts Gulf Investment view to stable

Moody's Investors Service said it changed the outlook to stable from negative on Kuwait-based Gulf Investment Corp.'s A2 long-term foreign-currency deposit rating and A2 senior unsecured debt rating.

The bank's short-term foreign-currency deposit rating was upgraded to P-1 from P-2 in light of the continued strengthening of the country's fiscal and external positions and its significantly improved systemic liquidity position.

The agency also downgraded the company's financial strength rating to D+ with a stable outlook.

This follows the recent upgrade of the Kuwait government bond ratings to Aa3 from A2, denoting the government's enhanced capacity to provide support. Combined with continued structural reforms and large net asset positions, Kuwait's healthy liquidity position alleviates any potential concerns regarding timeliness of support that may have existed in the past, resulting in the company's P-1 short-term rating, Moody's said.

The bank's financial strength rating is supported by the company's high-grade and well-diversified bond portfolio, excellent liquidity and exceptional operating efficiency, the agency said.

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