GIB long-term foreign currency ratings upgraded

A statement from the merchant bank yesterday said that GIB's long-term foreign currency rating has been upgraded to A- from BBB+ by Fitch and to Baa1 from Baa2 by Moody's. Fitch has also reaffirmed GIB's short-term foreign currency rating and individual rating at F2 and C respectively. A statement issued by Fitch said that the implementation of a Gulf merchant banking strategy, which began at the beginning of 2002, has contributed to a strengthening of GIB's financial position.

Growth in fee and treasury-related income is leading to an improvement in the quality of GIB's earnings, it added. It also said that GIB's risk profile is decreasing as it withdraws from non-AGCC lending.