Kuwait, November 8, 2006:  Moody's Investors Service has upgraded Gulf Bank's long-term foreign currency deposit rating from A2 to Aa3 with a stable outlook.

The rating action follows Moody's recent similar action on Kuwait's long-term foreign currency deposit ceiling and concludes the review for upgrade of Gulf Bank's foreign currency deposit ratings.

Moody's stated that the Aa3 long-term foreign currency deposit rating assigned to Gulf Bank reflects the Bank's intrinsic financial strength and its systematic importance to the domestic banking system.

Gulf Bank's Chairman & Managing Director, Mr. Bassam Y. Alghanim, commented, "The Moody's upgrade reflects the Bank's strong profitability, good asset quality, stable retail deposit funding and sound capitalization. The rating action affirms Gulf Bank's consistent performance, built on its strategy for sustained long-term growth."

Gulf Bank is one of the highest rated banks in the region with an "A" rating from Capital Intelligence and a strong "A-" rating from leading international ratings agencies, Fitch and Standard & Poor's.