On 6th July 2010, Moody’s upgraded the Outlook on Gulf Investment Corporation’s credit rating to Stable from Negative, while reaffirming its Baa2 Long Term rating.
This enhancement on GIC’s credit rating is a reflection of the significant improvement on all key parameters, including profitability, financial strength, leverage, capitalization and liquidity. The solid investment-grade ratings also reflect the strong support from shareholders & GIC’s standing in the region.
GIC posted a profit of US$ 91 million in 2009, and as of mid-year 2010, the corporation is well on target to achieve its financial goals. From a financial strength perspective, the Tier 1 capital adequacy ratio is a solid 28% and leverage at a conservative 3.1 times. In terms of liquidity, GIC has maintained ample liquidity, even after paying out in full the US$ 700 million term financing due in 2010.
Commenting on the recent action by Moody’s, Mr Hisham Al Razzuqi, CEO, said “We have worked extremely hard to improve GIC’s risk profile, capital adequacy and liquidity, while at the same time ensuring significant growth in terms of profitability. These efforts have borne fruit. We will continue to strengthen our financial position and grow our business.”
With the positive action from Moody’s, GIC now has reaffirmations from Fitch (BBB/Stable), Rating Agency Malaysia RAM (AAA/stable), and Moodys (Baa2/Stable).
GIC was established in 1983 by the Gulf Cooperation Council and is owned equally by the six member states of the oil rich bloc – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates. The Corporation focuses on developing private enterprise and economic growth in the Gulf market by offering financial products and services.