Bahrain, 7th September, 2009 - Moody’s confirms UGB’s investment grade ratings
 

 

Bahrain: 7 September, 2009: United Gulf Bank (UGB) has announced that Moody’s Investors Services has confirmed UGB’s Baa3/Prime-3 deposit rating and D+ bank financial strength rating. The rating for UGB’s subordinated debt has also been confirmed by Moody’s as Ba1.

In making their rating review, Moody’s explained that ‘the reasoning behind the ratings confirmation lies in the planned replacement by UGB of the direct commercial banking income with revenues of comparable quality. The bank’s liquidity and capitalization metrics are not materially affected by these changes.’

Moody’s outlook on UGB’s ratings is negative. Moody’s said that ‘the negative outlook on UGB’s ratings is driven by the increasingly challenging operating environment for investment banking and asset management.’

Commenting on the Moody’s ratings, Mr Masaud Hayat, Managing Director of UGB said:

“Moody’s ratings confirmation is extremely significant for the bank as it reflects positively on UGB’s ability and capacity to manage its business risks even during the financial challenges currently facing the global banking industry. This reflects the soundness of the bank’s risk management practices, the good quality of its assets and adequate capitalization.”

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