Moody's cuts United Gulf Bank

Moody's Investors Service said it downgraded the foreign-currency deposit ratings of United Gulf Bank BSC to Ba1/not-prime from Baa3/prime-2, bank financial strength rating to D- from D+ and senior unsecured and subordinated debt ratings to Ba1 and Ba2.

The deposit and debt ratings have negative outlooks, but the bank financial strength rating has a stable outlook.

The downgrades conclude a review that began in June.

The downgrades were driven by the more difficult operating environment for investment banks in the Gulf region and because of the gradual weakening of the bank's financial flexibility, Moody's said.

The bank remains exposed to an environment that features greater asset price volatility and more challenging wholesale funding conditions, the agency said.

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