GFH ratings affirmed by Fitch at ‘B’; outlook stable

GFH ratings affirmed by Fitch at ‘B’; outlook stable

Manama : GFH Financial Group (“GFH” or “the Group”) today announced that Fitch Ratings has affirmed its Long- and Short-Term Issuer Default Ratings (IDR) at 'B'. The Outlook on the Long-Term IDR is Stable.

Fitch has also affirmed the senior unsecured long-term rating of the US$500 million sukuk due 2025 issued through GFH Sukuk Company Limited (“GFH SCL”) at 'B' with a Recovery Rating of 'RR4'.

The reaffirmation of the Group’s rating was reported by Fitch taking into account the current management team's success in its efforts to develop the business model towards a more stable fee-based revenue stream.

According to the report, key ratings drivers included GFH’s evolving business model, noting management has made progress in implementing a de-risking strategy in recent years, growing its treasury activities, increasing fee-generative business from investment management and reducing legacy illiquid real estate investments. GFH’s overall profitability was affirmed as moderate, with capitalisation and liquidity noted to be in line with and above regulatory standards, respectively.

The Group’s treasury activities (26% of revenue in 2022), were also highlighted by Fitch as a growing area and significant profit contributor, having commenced only a few years ago. These activities, according to the report, are believed to add stability to