The Gulf Investment Corporation (GIC) announced today that Moody’s Credit Rating Agency upgraded its stand alone (BFSR) rating from ‘D-‘ to ‘D’ and reaffirmed the long term and short term ratings at Baa2/Prime-2, all ratings carried a Stable outlook.
The positive action by Moody’s is a reflection of the consistent and significant improvements on all key financial indicators. The BFSR is an indication of standalone financial strength. It also indicates the corporation’s solid internal control framework, its prudent strategic initiatives and favorable future prospects.
Commenting on the recent action by Moody’s, Mr Hisham Al Razzuqi, CEO, said “This action by Moody’s is all the more gratifying, given the current global economic condition which are fraught with uncertainties. GIC stands out as a strong regional financial institution, one of the very few in the GCC & MENA, which earned a positive rating action by Moody’s during the year to date.”
Earlier this year, Fitch upgraded GIC’s standalone rating and reaffirmed its long term ratings and outlook at BBB/Stable, As well, RAM recently reaffirmed GIC’s AAA rating and Stable outlook. With this upgrade by Moody’s, GIC’s rating profile is firmly-anchored on an upward trend.
GIC posted a profit of US$ 95 million for the first half of 2011, and is well on track to exceed the US$151 million full year profits which it earned in 2010. From a financial strength perspective, the Tier 1 capital adequacy ratio comfortably exceeds the international and regional requirements while its leverage stood at a conservative 2.5 times. Furthermore, GIC’s liquidity and liability profiles are quite robust.
Established in 1983, GIC is a regional financial institution owned entirely and equally by the six GCC states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. GIC strives to provide a comprehensive set of financial services that buttress the development of the private enterprise and foster economic growth in the Gulf region. GIC has emerged as a regional leader in its chosen fields, and has successfully promoted and developed projects in the GCC across a range of sectors, including financial services, petrochemical, metal, power, utilities, and, communications.