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Fitch downgrades Gulf International Bank's ratings


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Fitch downgrades Gulf International Bank's ratings

Fitch Ratings on May 4 downgraded 'slong-term issuer default rating to A- from A and its short-term issuer defaultrating to F2 from F1.

The outlook on the long-term rating is negative.

The agency also downgraded the rating on the bank's seniorunsecured debt to A- from A.

The agency said the ratings action follows Fitch's recentdowngrade of Saudi Arabia,following which Fitch downgraded the long-term issuer default ratings andrevised downward the outlooks to negative of several Saudi Arabian banks.

Gulf International Bank's issuer default ratings and itssupport rating, which was affirmed 1, are driven by the agency's expectation ofan extremely high probability of support from the bank's majority shareholder,the Public Investment Fund of Saudi Arabia, despite the bank being licensed andheadquartered in Bahrain.

Gulf International Bank's downgrade reflects Fitch'sapproach of rating the bank's long-term issuer default rating one notch belowthe Saudi domestic systemically important bank support rating floor of A at A-.

The negative outlook mirrors that on Saudi Arabia.