Bahrain, 26th August, 2009 - UGB’s credit ratings affirmed
 

 

Bahrain, 26th August 2009: United Gulf Bank B.S.C. – Bahrain (UGB), has announced that the international credit rating agency, Capital Intelligence, has affirmed UGB’s BBB+ long term rating and A2 short term rating with a Stable outlook. UGB’s Financial Strength rating has also been affirmed at BBB+ with a Stable outlook.

In its latest annual review on UGB, Capital Intelligence said that ‘notwithstanding the volatility in global financial markets, the quality of UGB’s remaining core investments remain sound. The balance sheet is well capitalized, notwithstanding the decline in the capital adequacy ratio, reflecting a policy of steady earnings retention to support investment activity. Profitability is expected to decline significantly in the current year following a rather exceptional year in 2008 reflecting the lower level of exits combined with the difficult investment market.’

Capital Intelligence said that ‘UGB’s liquidity position remains satisfactory and its ownership through KIPCO remains strong.’

Commenting on the Capital Intelligence ratings, Mr Masaud Hayat, Managing Director of UGB said:

“This is a very reassuring outcome for UGB given the pressures and challenges the financial markets have been facing, and reflects UGB’s sound business strategy and good asset quality.”

UGB, the investment banking subsidiary of Kuwait Projects Company (Holding) (KIPCO), manages a regional network of investment banking and asset management companies.

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Notes to Editors:

About UGB:

UGB, the investment banking subsidiary of Kuwait Projects Company (Holding) (KIPCO), manages a regional network of investment banking and asset management companies. Its proprietary investments include assets in real estate, private equity, structured products and quoted securities. As of June 2009, assets under management exceeded US$ 8.4 billion (2008: US$ 9 billion). UGB’s core subsidiaries and associates include: Al Dhiyafa Investment Company, Al Sharq Financial Brokerage Company, KIPCO Asset Management Company (KAMCO), Manafae Investment Company, Millennium Finance Corporation, North Africa Holding Company, Royal Capital Company, Syria Gulf Bank, Tunis International Bank, United Networks (formerly United Cable Company), United Gulf Bank Securities Company, United Gulf Financial Services – North Africa, United Healthcare Company, United Industries Company and United Real Estate Company.

UGB and its subsidiary KAMCO have a proven track record of successfully completing around 60 investment banking transactions for its clients since 2001 with an aggregate value of over US$ 8 billion including corporate finance, advisory, new issue placement and underwriting, corporate restructuring, bond issuance and merger and acquisition.

UGB is part of the KIPCO Group - one of the biggest diversified holding companies in the Middle East and North Africa, with assets worth more than US$19 billion under management or control. The Group has substantial ownership interests in a portfolio of over 50 companies operating across 21 countries. The company’s main business sectors are financial services and media. Through the subsidiaries and affiliates of its core companies, KIPCO also has interests in real estate, industry, healthcare and the management & advisory sector.
 

For further information:

Telephone: United Gulf Bank on +973 17533233 or email info@ugbbah.com