Bahrain’s GFH Financial Group announced today (September 27) that Capital Intelligence Ratings (CI Ratings), the international credit rating agency, has affirmed its long term rating to ‘BB’, while maintaining the short-term rating at ‘B’ with a ‘Stable’ outlook.

The Group’s ratings were supported by the bank’s ongoing strong profitability at both operating and net levels, improved diversification of business segments and revenues in recent years, as well as the successful implementation of its strategy to convert to a financial group.

Also supporting the ratings are GFH’s low debt levels and consequent moderate leverage, as well as the sound capital adequacy. The adequate balance sheet liquidity along with satisfactory debt service capacity and reasonably diversified funding sources are also supporting factors.

The major constraining factors reported were sovereign credit risk and relatively high concentration of assets in the real estate sector. Also, despite the rebound in oil prices, the regional economic environment remains challenging which has also had an impact GFH’s commercial banking activities.  

Hisham Alrayes, CEO of GFH, said: “We are pleased to see continued confidence in the strategy, performance and outlook of GFH by CI Ratings and the market more broadly. The report underscored the strength of GFH’s financial position as well as the considerable progress that we have and continue to make in transforming from a pure investment bank into a fully integrated financial group.”

“The report noted the enhancements in our investment banking business whereby we have made a significant number of investments in strong and promising cash-yielding private equity businesses within stable sectors such as healthcare, education and consumer retail, as well as income-producing real estate assets across the US and Europe.

“As we head into the final quarter of 2018 and look ahead into the next year, we will continue to work hard to deliver on our strategy, extract value from our existing assets and identify unique new opportunities that can provide for steady income yields and even stronger performance and profitability for our investors and shareholders,” he added.

GFH is one of the most recognized financial groups in the gulf region that includes asset management, wealth management, commercial banking and real estate development. The group operations are focused in the GCC, North Africa and India. GFH is listed in Bahrain Bourse, Kuwait Stock Exchange and Dubai Financial Market. – TradeArabia News Service