Gulf Bank's rating under review

28 October 2008
Kuwait's Gulf Bank has been placed on review for a possible downgrade by US-based credit ratings agency, Moody's Investors Service.

The ratings agency acted after Gulf Bank announced on 26 October that it had suffered a large loss from trading in foreign exchange derviative instruments on behalf of its customers.

Moody's says it has "placed the C financial strength rating of Gulf Bank on review for possible downgrade".

The bank's Aa3 long-term local and foreign currency deposit ratings were also placed on review for a possible downgrade.

The Central Bank of Kuwait suspended trading in Gulf Bank's shares on 26 October.

It sent a team of administrators into the bank to determine how much money Gulf Bank had lost.

In its statement, Gulf Bank declined to say how much money had been lost.

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