S&P ups three Gulf banks

Standard & Poor's said it raised to A+ from A its long-term counterparty credit ratings on three Gulf Cooperation Council banks: National Bank of Kuwait SAK, National Bank of Abu Dhabi and Qatar National Bank.

At the same time, the A-1 short-term ratings on the three banks were affirmed, the agency said.

The outlook is stable.

"The upgrades reflect the banks' strong financial performance, amid economic momentum in their respective countries," said S&P credit analyst Emmanual Volland.

The long-term ratings on the banks, which are considered as government-related entities under the agency's methodology, continue to be higher than the stand-alone ratings to reflect its expectation of the strong likelihood of extraordinary support from their governments in case of need.

"The stable outlook reflects the banks' strong commercial and financial profiles on the one hand and, on the other, the inherent issues of operating not just in a volatile region, but also in countries whose economies are primarily dependent on oil production and refining," Volland added.

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