Capital Intelligence Raises First Gulf Bank’s Rating to A-
Capital Intelligence (CI) rating agency has raised FGB’s (First Gulf Bank) long-term foreign currency rating and financial strength rating from BBB to A-. The bank’s short-term foreign currency rating was increased from A3 to A2, the support rating was raised from 3 to 2, whereas a stable outlook was assigned to all the ratings. The agency noted that this upgrade is attributable to the bank’s ability to raise a substantial amount of new capital amid the strength of its ownership by the ruling family of Abu Dhabi and the family’s confidence in its management team and board. FGB was last trading at around AED25 ($6.8) per share on the Abu Dhabi Stock Market.
IFA Announces a 46% Rise in H1-2005 Profits
Kuwaiti-based International Financial Advisors (IFA) announced a 45.8% year-on-year rise in first-half profits to KD33.3m ($114m). The six months profits included around KD30m ($103m) in unrealised profits on investments, the result of a sell-off of some of the company’s assets. Earnings per share rose to KD0.109 ($0.37), up from KD0.077 ($0.26) in first-half 2004. IFA is the parent company of IFA Hotels and Resorts which launched a $150m residential project in Abadiyah, Lebanon. IFA’s listed shares, amounting to 239,813,827, were last trading at around KD1.5 ($5.14) per share on the Kuwait Stock E
Country Profile: Qatar
Capital Intelligence (CI) rating agency has raised Qatar’s long and short-term foreign currency ratings from A- to A+, and from A2 to A1 respectively. CI also assigned a long-term local currency rating of A+ and a short-term local currency rating of A1 to the sovereign, whereas a stable outlook was assigned to all the ratings. The agency noted that this upgrade reflects the investment in the gas sector and other export-oriented industries which will carry budget and current account surpluses over the medium term, hence further improving already strong debt-servicing ability. Qatar is expected to become the world’s largest producer and exporter of Liquefied Natural Gas (LNG) in the next five years. CI assumes that earnings from LNG and related products will exceed those from oil by the year 2008. High oil prices, increasing output in oil and gas industries, and advances in fiscal management have resulted in an average budget surplus of 6% of GDP in each of the past five years. Government debt decreased progressively to stand at 30% of GDP in the fiscal year ending in March 2005.
