Global Arab Network | Saudi, Bahrain - Moody's assigns A3 rating to GIB's SAR3.5 billion unsubordinated FRNs

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Saudi, Bahrain - Moody's assigns A3 rating to GIB's SAR3.5 billion unsubordinated FRNs

Global Arab Network - - Gamal Ragay

Thursday, 22 April 2010 09:36

Moody's Investors Service has today assigned a rating of A3 to the SAR3.5 billion (Saudi Arabian Riyal) floating-rate notes (FRNs) issued by Gulf International Bank (GIB). The rating of the notes carries a stable outlook.

Moody's said that the FRNs, launched in the Kingdom of Saudi Arabia through the bank's Riyadh branch, constitute unsubordinated obligations of GIB ranking equally with its other senior unsecured obligations.

Moody's added that GIB's A3 deposit rating is based on the bank's standalone financial strength (represented by a D+ bank financial strength rating mapping to a Ba1 baseline credit assessment) as well as four notches of uplift reflecting an assessment of the likelihood of parental support for the bank in case of need. GIB is majority owned by the Government of Saudi Arabia.

Moody's previous rating action on GIB was on 24 November 2009 when it assigned ratings to the bank's $4.0 billion EMTN programme.

The principal methodologies used in rating Gulf International Bank were Moody's "Bank Financial Strength Ratings: Global Methodology" (February 2007) and "Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology" (March 2007), and available on www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may have been considered in the process of rating the bank can also be found in the Rating Methodologies sub-directory on Moody's website.

GIB is headquartered in Manama, Bahrain and at the end of June 2009 had total assets of US$17.12 billion.

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