...Sovereign Support Drives Rating: Gulf Bank's (GB) Issuer Default Ratings (IDRs) reflect Fitch Ratings' view that there is an extremely high probability of support being provided by the Kuwaiti authorities if needed. Fitch's assessment of support is based on the financial strength of `AA' rated Kuwait, in addition to the authorities' proven willingness to support the domestic banking system. Improved Company Profile: GB's Viability Rating (VR) reflects high lending concentration and profitability below peers. It also benefits from an improved company profile following restructuring, a strong management team, better asset quality and acceptable capital ratios. Effect of Falling Oil Prices: The domestic operating environment is not immune to falling oil prices but Fitch believes pressure will be partially offset by rising government spending as that filters down to the wider economy. Tougher conditions in Kuwait and the region will, however, translate to slower asset and revenue growth for...
