Fitch downgrades Gulf Investment

Fitch Ratings said it downgraded Gulf Investment Corp.'s long-term issuer default rating to BBB+ from A- and short-term issuer default rating to F2 from F1.

The outlook is stable.

The ratings are driven by the support from the six sovereign shareholders – Saudi Arabia, Kuwait. Oman, Bahrain and the United Arab Emirates, Fitch said.

The long-term issuer default rating of BBB+ reflects a one-notch downward adjustment to the average rating of shareholders to reflect a moderate propensity to support, Fitch said.

The ongoing dispute between Qatar and Saudi Arabia also could affect shareholders' propensity to support the institution in the future, although tangible evidence of this has not emerged to date, the agency said.

Fitch assesses GIC's intrinsic rating at 'bbb-', reflecting a solvency assessment of 'bbb+' and a two-notch downward adjustment for a 'high-risk' business environment. GIC's liquidity assessment is 'aa-'.

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