GFH gets BB- rating with positive outlook

Gulf Finance House (GFH), the Bahrain-based Islamic investment bank, said Capital Intelligence (CI) recently concluded a rating exercise on the bank and accorded GFH a long-term and short term corporate rating of BB- and B respectively with a positive outlook.
In its report, CI notes that the bank’s ratings reflect a significant reduction in leverage as a result of debt repayments and substantial increases in equity.
The rating agency has placed positive weightage on GFH’s successful restructuring of all its term debt with extended repayment periods, and the return to profitability in 2012.
Capital Intelligence also highlighted and acknowledged that the fresh injections of capital through the bank’s convertible murabaha program along with debt repayment have substantially improved GFH’s leverage.
CI has noted that sector concentrations in the asset base coupled with the difficult investment environment will prove to be a challenge in the immediate future but given the significant improvement in liquidity and leverage in H1 2013, a positive outlook was assigned to GFH.
Hisham Alrayes, acting CEO of GFH, said: “We are very pleased with the ratings affirmation by Capital Intelligence and view it as an endorsement of the actions taken by the bank and its shareholders to strengthen its financial position, and position it for further profitable growth. We believe that the recent rating will strengthen market confidence in the bank and allow for better business opportunities in the future.”
Alrayes said: “We are confident of the future prospects for the bank and are determined to deliver higher returns for our investors and shareholders as we go forward.”