Moody’s upgrades GIC’s credit rating
Kuwait, July 6, 2010
Moody’s has upgraded the outlook on the credit of Kuwait-based Gulf Investment Corporation (GIC), a leading financial institution, to Stable from Negative, while reaffirming its Baa2 long term rating.
This enhancement on GIC’s credit rating is a reflection of the significant improvement on all key parameters, including profitability, financial strength, leverage, capitalization and liquidity.
The solid investment-grade ratings also reflect the strong support from shareholders & GIC’s standing in the region.
GIC posted a profit of $91 million in 2009, and as of mid-year 2010, the corporation is well on target to achieve its financial goals, a statement said.
From a financial strength perspective, the Tier 1 capital adequacy ratio is 28 per cent and leverage at a conservative 3.1 times. In terms of liquidity, GIC has maintained ample liquidity, even after paying out in full the $700 million term financing due in 2010.
“We have worked extremely hard to improve GIC’s risk profile, capital adequacy and liquidity, while at the same time ensuring significant growth in terms of profitability,” said Hisham Al Razzuqi, chief executive office of GIC.
“These efforts have borne fruit. We will continue to strengthen our financial position and grow our business.”
With the positive action from Moody’s, GIC now has reaffirmations from Fitch (BBB/Stable), Rating Agency Malaysia RAM (AAA/stable), and Moody’s (Baa2/Stable). – TradeArabia News Service