Fitch upgrades Gulf Investment

Fitch Ratings said it upgraded Gulf Investment Corp.'s short-term issuer default rating to F1 from F2 and affirmed its long-term issuer default rating at BBB+ with a stable outlook.

Fitch said it upgraded the company's short-term ratings as a result of the application of its updated rating criteria.

The ratings are driven by the support that Fitch believes the institution would receive from its six sovereign shareholders: Saudi Arabia, Kuwait, Qatar, Oman, Bahrain and the United Arab Emirates, the agency said.

The improved solvency primarily reflects the company's excellent and strengthening capitalization as a result of the de-leveraging that began in 2008 and has accelerated in recent years, Fitch said.

Concentration risk is moderate with the top five largest equity investments representing 44% of total banking exposure at year-end 2018, the agency noted.

The company's high risk profile is mitigated by its strong risk policy framework and senior management's high level of risk management expertise, Fitch added.

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