Fitch af­firms GFH rat­ing with Re­vised out­look to pos­i­tive

Kuwait Times - - BUSINESS -

GFH Fi­nan­cial Group (GFH) an­nounced yes­ter­day that FitchRat­ings, the in­ter­na­tional credit rat­ing agency, has af­firmed its Short-term Is­suer De­fault Rat­ing(IDR) at ‘B’ and re­vised its out­look up­ward from sta­ble to Pos­i­tive­with a Longterm IDR at ‘B-’.

The pos­i­tive out­look con­firmed by Fitch re­flects the steps GFH’s man­age­ment have taken to strengthen its bal­ance sheet by pay­ing down debt, re­shap­ing the busi­ness model with fo­cus on in­come-gen­er­at­ing in­vest­ments, and con­se­quent im­prove­ment of prof­itabil­ity. Fitch also con­sid­ers Abu Dhabi Fi­nan­cial Group’s ac­qui­si­tion of around 12% in GFH via its sub­sidiary, In­te­grated Cap­i­tal PJSCas a pos­i­tive step for GFH. Fitch rat­ing con­straints are pri­mar­ily that GFH busi­ness en­vi­ron­ment re­mains volatile, un­til GFH builds a longer track record of sus­tain­able busi­ness.

Com­ment­ing, Mr Hisham Al­rayes, CEO of GFH said, “We are pleased with the af­fir­ma­tion of our rat­ing by Fitch and, in par­tic­u­lar, of their recog­ni­tion of the pos­i­tive fu­ture out­look for the Group. This up­ward re­vi­sion of our out­look is the re­sult of the strength of our new strat­egy and our suc­cess in de­vel­op­ing new re­cur­ring steams of in­come through in­come yield­ing in­vest­ments as well as the con­tin­ued progress we are mak­ing in max­i­miz­ing the per­for­mance of our ex­ist­ing as­sets and projects. We are con­fi­dent that fu­ture holds sig­nif­i­cant ben­e­fits for the Group, our in­vestors and share­hold­ers and will re­flect in even fur­ther rat­ings im­prove­ments.”

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