Moody's confirms United Gulf Bank

Moody's Investors Service said it has confirmed the Baa3/Prime-3 deposit ratings, Ba1 subordinated debt rating and D+ bank financial strength rating of United Gulf Bank BSC, with a negative outlook.

This action concludes Moody's review of the bank's ratings initiated on May 12, the agency said, adding that it focused on how the sales of the company's commercial banking subsidiaries to Burgan Bank (A2/Prime-1/D+) were likely to affect its business mix and risk profile.

The sale of three banking subsidiaries took place in 2008 (Jordan Kuwait Bank) and the first half of 2009 (Algeria Gulf Bank and Bank of Baghdad) while the sale of a further banking subsidiary (Tunis International Bank) is due to be completed by the end of the year, subject to regulatory approval, Moody's added.

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