The Kuwait-based Gulf Bank has had its long-term deposit rating upgraded to Baa1 from Baa2 by the US-based rating agency Moodys. The banks standalone bank financial strength rating has been revised to D from D-.
The outlook for the banks long-term ratings remains positive.
The upgrade is driven by improvements to the banks asset quality and provisioning coverage, as well as the improvement of the banks capital buffers to levels seen before 2008-09 global financial crisis.
At the end of 2013, the banks ratio of non-performing loans to gross loans declined to 6.7 per cent from more than 30 per cent at the end of 2009.
Gulf Bank suffered large losses from transactions in complex derivative instruments in 2008 and concentrated lending to the real estate market.