S&P puts Gulf International on Watch

Standard & Poor's said that it placed Gulf International Bank BSC's BBB+/A-2 long- and short-term counterparty credit ratings on CreditWatch with negative implications.

The CreditWatch placement follows the downgrade of Bahrain (BBB/A-3). The ratings on Bahrain remain on CreditWatch negative.

The rating action on the bank reflects the view that the bank's financial profile, mainly funding and liquidity, might deteriorate even though it is not directly exposed to Bahrain's sovereign credit risk and operating environment, the agency said.

The ratings also reflect the view that the current political uncertainty in the country might result in a potential waiver of its articles of association and suspension of its special status, the agency added.

The ratings consider the bank's ownership structure, strong capitalization and efficiency, and satisfactory liquidity, S&P said.

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