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:
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.
For further information:
Telephone: United Gulf Bank on +973 17533233 or email email@example.com