KUWAIT: The Gulf Investment Corporation (GIC) announced that Fitch Credit Rating Agency affirmed its Long Term IDR ratings at A-, Short Term ratings at F1, and Stable outlook. The viability ratings were reaffirmed at bb.
The action by Fitch is positive, especially in the current regional context where ratings have been under pressure for governments and financial institutions. Fitch have highlighted the capability of GIC’s shareholders as a key support factor. They have also emphasized the strength of management, robust capital position and strong funding & liquidity profile as positive contributors.
Commenting on the recent action by Fitch, Ibrahim Al Qadhi, CEO, said “I believe this is a significant achievement, given the challenging operating environment.” He added “the positive rating action is a validation of the support of our shareholders, and our efforts, as a team. It reflects the corporation’s strong financial condition, prudent strategic initiatives and favorable future prospect”. The balance sheet then stood at $5.1 billion and Shareholders’ equity was $2.5 billion.
The modest leverage level and robust liquidity & liability profile, contributes to GIC’s strong financial condition. 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 Kuwait.