Kuwait, May 1st, 2007: Leading rating agency Moody's Investors Service has upgraded Gulf Bank's bank financial strength rating (BSFR) from C- to C, as part of a review of its rating methodologies for Middle East banks.

According to Moody's, the upgrade is due to Gulf Bank's increasingly sound fundamentals and strong franchise. BFSRs are the starting point of Moody's bank credit analysis play an important role in determining Moody's bank deposit and debt ratings.

"This rating action affirms Gulf Bank's status as one of the highest rated banks in the region," commented Bassam Y. Alghanim, Chairman & Managing Director of Gulf Bank. "We are pleased that Moody's has recognized Gulf Bank's fundamental strengths and excellent performance."

Moody's has assigned Global Local Currency Deposit Ratings of Aa3/P-1 to Gulf Bank and has maintained the Bank's Foreign Currency Deposit Ratings at Aa3/P-1. The outlook on all ratings is stable.

Gulf Bank is also rated A by Fitch Rating and Capital Intelligence and A- by Standard & Poor.