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Moody’s upgrades GIC credit rtgs by multiple notches to A2 Achievement reflects sound strategy and strong financial condition: CEO

KUWAIT CITY, May 10: The Gulf Investment Corporation (GIC) announced today that Moody’s Credit Rating Agency upgraded its Long Term ratings by 3 notches to A2, from the previous Baa2 rating. Moody’s also upgraded GIC’s Short Term ratings to P1, the highest in that category.  All ratings carry a Stable outlook. The positive action by Moody’s is based on the re-categorization of GIC as a Multilateral Development Bank (MDB) and the resulting change in rating methodology.  The action from Moody’s reflect the agency’s recognition of GIC’s strong ownership structure and public policy mandate.  It also indicates the corporation’s strong financial condition, prudent strategic initiatives and favorable future prospects.

Commenting on the recent action by Moody’s, Ibrahim Al Qadhi, CEO, said “The efforts made by the Shareholders, the Board, and the Executive Management have borne fruit.” He added “this upgrade is likely to have a positive impact on the overall performance of the corporation by reduced funding costs.  This action by a leading international rating agency is an indication of their trust in the robust financial condition of GIC.  I am hopeful that the corporation will continue on its path of good performance and growth.”

GIC posted a profit of US$ 165 million for the financial year ending Dec 31, 2013, up 25% compared to the US$ 131 million earned in the 2012.  From a financial strength perspective, the Tier 1 capital adequacy ratio reached 36%, comfortably exceeding the international and regional requirements while its leverage, in terms of debt to equity, stood at a conservative 1.1 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.  It is headquartered in the State of Kuwait.

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