Although they weakened the bank's financial performance for 2007, improved core operating earnings and exceptional revenues softened the impact. GIC made a net profit of $253m in 2007, after allocating $246m of provisions on its securities portfolio--mainly for structured investment vehicles and structured credits.
The ratings remain supported by the institution's ownership structure, adequate capitalization, consistent strategy, and improvement in core profitability. Negative rating factors include GIC's limited customer franchise and revenue diversification and wholesale funding profile. GIC is equally owned by the six states of the Gulf Cooperation Council. The long-term rating on GIC, a government-related entity under our methodology, is one notch higher than its stand-alone creditworthiness, reflecting its ownership structure and our expectation that it is highly likely to receive extraordinary support in case of need.
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Kuwait-based Gulf Investment Corporation ratings unaffected by write-downs on securities
- Kuwait: Thursday, February 21 - 2008 at 08:20
- PRESS RELEASE
Standard & Poor's Ratings Services said today that its counterparty credit ratings on Kuwait-based Gulf Investment Corporation G.S.C. (GIC; A-/Stable/A-2) were unaffected by significant mark-to-market write-downs on its securities portfolio.
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Notes and media contacts
Analyst Contacts:Emmanuel Volland,
Paul-Henri Pruvost,
Financial Institutions Ratings Europe
Posted by Anne-Birte Stensgaard, Senior News EditorThursday, February 21 - 2008 at 08:20 UAE local time (GMT+4)
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