Fitch Ratings on June 7 changed the outlook on the long-term issuer default rating of Kuwait-based Gulf Investment Corp. GSC to negative from stable, while affirming the rating at A-.
Its F1 short-term issuer default rating was also affirmed.
The negative outlook reflects a weakening capacity by its shareholders, the six countries that form the Gulf Cooperation Council, to support the firm, as demonstrated by the downgrade of the sovereign ratings of Qatar, Bahrain and Oman in the past 12 months.
Fitch assesses GIC's support rating at "a-," reflecting a "moderate" propensity of its shareholders to support based on the absence of callable capital as well as GIC's modest share of financing in the Gulf. The agency added that the ongoing dispute between Qatar and Saudi Arabia could impact GIC shareholders' readiness to support the firm.
The other GCC member states are Kuwait and the United Arab Emirates.
