Moody's on Sept. 2 assigned long- and short-term bank deposit ratings of Baa1/Prime-2 to the Saudi Arabian unit of Gulf International Bank BSC, with a stable outlook on the long-term rating.
The agency also assigned the bank a baseline credit assessment of "ba3", adjusted baseline credit assessment of "ba2", long- and short-term counterparty risk ratings of Baa1/Prime-2 and long- and short-term counterparty risk assessments of Baa1(cr)/Prime-2(cr).
The bank's deposit ratings are on the same level as its parent, reflecting an expectation of very high support from the Saudi Arabian government, which controls both entities, although the parent is based in Bahrain. Saudi Arabia will continue to be a driving force for the bank's strategy and performance, the agency said.
Meanwhile, the baseline credit assessment anchors on the bank's strong capitalization, which balances its weak profitability and high level of problem loans, Moody's noted.
