Moody's downgrades GBK to D-

Moody's Investors Service has downgraded the financial strength rating (FSR) of Gulf Bank of Kuwait (GBK) to D- from D+ due to significant challenges still it is facing.

This is despite its progress in overcoming the large losses arising from its transactions in complex derivative instruments in 2008 and its subsequent recapitalisation in January 2009. These challenges relate to the risks associated with the structure of its balance sheet. Gulf Bank has high single-party exposures and high exposure concentrations to several sectors.

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