GFH’s ratings upgraded by S&P to ‘B’ on resilient business and financial performance, outlook stable

GFH’s ratings upgraded by S&P to ‘B’ on resilient business and financial performance, outlook stable

Manama: – GFH Financial Group B.S.C (“GFH” or “the Group”) today announced that S&P Global Ratings raised its long-term issuer credit rating to ‘B’ from ‘B-‘, Outlook Stable. At the same time, the agency also raised the credit ratings on sukuk issued by GFH Sukuk Company Ltd to ‘B’ from ‘B-‘.

The Group’s ratings upgrade is said to reflect GFH's strong business and financial performance. The report noted that GFH’s revenue has proved resilient over the 2020-2022 period as well as noting that return on equity has improved to 8.6% over the first nine months of 2022. Despite pressure on the Group’s treasury activities from rising interest rates, the report also cited GFH’s ability to have delivered good investment banking revenue, building on its real estate specialization in Europe and the U.S. and steady commercial banking performance after a restructuring in 2020. The stable outlook, according to S&P, reflects its view that GFH can reduce its exposure to real estate assets while maintaining moderate capitalisation over the next 12-18 months.

S&P went on to highlight that the macroeconomic environment will continue to support GFH's activities. The report expects that oil prices will remain high through 2023-2024, which would support abundant liquidity in