S&P lowers Gulf International Bank view to stable

Standard & Poor’s said it revised the outlook on Gulf International Bank to stable from positive.

The agency also said it affirmed the BBB+ long-term and A-2 short-term counterparty ratings on the bank.

The economic environment in the Gulf Cooperation Council countries is becoming less supportive for banks operating in the region, S&P said.

The outlook revision on the bank reflects the weakening operating environment in the Gulf region, and specifically in Saudi Arabia, where the bank conducts the majority of its business, S&P said.

The economic slowdown will likely put pressure on the bank’s corporate client acquisition in the Gulf region. Its capacity to increase earnings also may be constrained by slightly rising credit risks, the agency said.

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