GFH gets top Fitch ratings, stable outlook
MANAMA, July 7, 2018
Bahrain-based GFH Financial Group (GFH) said it has received a long-term issuer default rating (IDR) at 'B’ from international credit rating agency Fitch with a stable outlook. The short-term IDR has also been affirmed at 'B'.
The affirmation was cited by Fitch as a reflection principally of its management’s continued efforts on reshaping the GFH’s business model towards a greater focus on fee generation and lower risk, lower return investments as well as the group's achievement of a second consecutive year of material net income.
It also cited as positive GFH’s reported $37 million of profit for the first quarter of 2018 and noted that the continuation of such levels of profitability could lead to a further rating strengthening.
According to Fitch, GFH’s rating also underscores the group's sound capitalization relative to the rating level, supported by regulatory oversight of the Central Bank of Bahrain (CBB). Also noted as a positive factor by is the continued presence of Abu Dhabi Financial Group as a significant shareholder in the group.
Commenting on the ratings, CEO Hisham Alrayes said: "We’re pleased with Fitch’s affirmation of GFH’s rating and its recognition of the strength of our strategy and the positive financial performance and continued profitability that GFH has effectively delivered over the past two years as well as into 2018."
"As noted by the agency, GFH has worked hard to shift our business model, creating a stronger and more well diversified financial group. These efforts are paying off and we will continue to build on these results and the momentum in our business," noted Alrayes.
"This includes an ongoing focus on creating value and enhancing profitably as well continuing to shift the composition of our revenue streams and investments by focusing on income generating assets. As we do so, we look forward to consistently strengthened results and seeing an upgrade of our ratings in the future," he added.-TradeArabia News Service
