S&P rates Gulf Insurance Group's planned perpetual bonds A-

Gulf Insurance Group has received an A- credit rating from S&P Global Ratings for the perpetual Tier 2 capital bonds it plans to issue with a total value of KD 100 million, subject to obtaining the necessary regulatory approvals. The bonds are expected to be issued in two equal tranches of up to KD 50 million each, at fixed and floating rates, callable after five years. The rating is two notches below the group's A+ long-term credit rating, which carries a stable outlook, reflecting the nature of the bonds and their interest-deferral features. Proceeds are expected to fund the group's general purposes, including the possible refinancing of existing obligations.