Fitch reaffirms GIB's credit rating at 'A'

The individual rating of the Bank has also been reaffirmed at "C/D."

The affirmation of the ratings reflects Fitch's view that GIB enjoys very strong support from its shareholders, in addition to the strong asset quality in the Bank's loan book and the adequate profitability of the core wholesale banking business.

"GIB's core business is GCC-focused merchant banking. This will continue to be its main strategic focus and GIB has a good regional franchise in this business line. Relationship management teams provide an integrated service to GCC clients, using the Bank's traditional lending relationships as an entry point for selling additional products, including advisory services, corporate finance and asset management. The Bank has expanded its product range to include shipping finance, secondary market loan trading, Islamic finance and GCC private equity,"

said Fitch in its report.

The rating agency added that "GIB aims to expand its share of the investment banking market in the Gulf.

Despite continuing turbulence in the international credit markets and stock market volatility across the GCC, Fitch expects capital markets activity in the Gulf to increase in areas such as initial public offerings (IPO) of privately-held family companies, privatisations, the issuance of debt and sukuk by governments and large corporates and advisory services."

In addition, Fitch stressed that GIB is the largest commercial asset manager in the Gulf region, with third-party assets under management of $24bn at end of 2007.

It said the Bank's discretionary portfolios are managed by its London-based subsidiary, GIBUK, and are marketed to institutional clients mainly in the GCC.

"We are very pleased with the rating affirmation by Fitch, which comes at a difficult time for banks active in international markets as a result of the unprecedented stresses in the money markets and the significant challenges facing the international banking system. This is a vote of confidence in GIB of which we are proud of," commented Dr. Khaled M. Al-Fayez, GIB's Chief Executive Officer.

Dr. Al-Fayez explained that an "A" rating refers to high credit quality, denotes expectations of low credit risk, and the capacity for payment of commitments is considered strong.

He added: "The rating affirmations reflect the Bank's leading position in the investment banking and project finance market in the region. We have strengthened our franchise in the GCC states as a result of our ability to provide sophisticated, customer-tailored products and services that provide innovative solutions to complex financial requirements."

GIB is a leading merchant bank in the Middle East with its principal focus on the Gulf Cooperation Council (GCC) states.

With a proven track record spanning more than 30 years, GIB provides client-led, innovative financial products and services to a wide customer base in the region, including investment banking, capital markets debt securities, private equity, asset management, project and structured finance and Islamic banking.