Fitch upgrades GFH ratings to B

Manama : GFH Financial Group (GFH) announced yesterday that Fitch Ratings, the international credit rating agency, has upgraded its Long-term Issuer Default Rating (IDR) from ‘B-’ to ‘B’ with a Positive Outlook. The Short-term IDR has been affirmed at ‘B’.

The upgrading of the Group’s IDR rating was cited by Fitch as a reflection principally of GFH’s improved financial position following its strengthening of its capital position and reducing associated legacy uncertainties.

The Positive Outlook further reflects Fitch’s view of the measures GFH’s management has taken to reshape its business model towards a greater focus on income-generating investments. These include an increasing and generally more stable revenue contribution from commercial banking activities. Also noted as a positive factor by Fitch is Abu Dhabi Financial Group’s presence as a significant shareholder in the Group.

Fitch further opined that the ratings could be upgraded if GFH demonstrates a track record of stable profitability and cash flows from its business model.

Commenting, Hisham Alrayes, CEO of GFH said, “We look forward to further enhanced performance and results as we build upon these foundations.”