Fitch lowers Gulf Investment view to negative

Fitch Ratings said it revised the outlook on Gulf Investment Corp.'s long-term issuer default rating to negative from stable and affirmed its issuer default rating at A-.

Fitch also said it affirmed GIC's short-term issuer default rating at F1.

The outlook revision reflects a weakening in the capacity to support of its key shareholders as evidenced by the downgrade of the sovereign ratings of three shareholders over the past 12 months: Qatar, Bahrain and Oman, Fitch explained.

While the average rating of key shareholders has remained unchanged at A, a further rating downgrade by one notch of any of the six key shareholders would lead to a decline in their average rating to A-, the agency said.

The negative outlook on Oman's rating also further highlights the vulnerability of Gulf Investment's rating to a further shareholder downgrade, Fitch said.

The ongoing dispute between Qatar and Saudi Arabia also could affect shareholders' propensity to support Gulf Investment, the agency added.

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