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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