Mubasher: Moody's Investors Service has affirmed Gulf Bank's long-term deposits at ‘A3’ and the short-term deposits at ‘P-2’.

The rating agency has also changed the bank's outlook to ‘Stable’ from ‘Positive’, according to a bourse statement on Sunday.

The lender’s Baseline Credit Assessment (BCA) and the adjusted BCA were affirmed at ‘ba1’.

Moody's credit ratings were backed by the bank's very high probability of receiving government support, coupled with its constant ability to generate basic earnings.

The bank's standalone credit profile also continues to be underpinned by comfortable liquidity and stable funding. 

However, the ratings were impacted by high credit risks in the bank’s loans portfolio, combined with pressures on the operating environment in Kuwait due to the double shock of the coronavirus (COVID-19) outbreak and the prolonged declining oil prices.

In 2019, the lender’s net profit surged by 12.2% on an annual basis to reach KWD 63.64 million ($202.8 million).