Mubasher: Capital Intelligence (CI) affirmed its long-term rating at ‘BB’ and the short-term Rating on GFH Financial Group at "B", while maintaining a “Stable” outlook, according to a statement.
The ratings were mainly driven by GFH’s improved diversification of risk assets and revenue streams, sound capital adequacy and satisfactory leverage notwithstanding increases attributable to the consolidation of the group’s unit Khaleeji Commercial Bank (KHCB).
The forthcoming $135 million Sukuk announced by the group also supported the ratings, the statement highlighted, adding that sukuk will refinance and extend existing loan maturities.
“The rating constraints are the ongoing earnings volatility, despite a rebound in Q1-16 and the still challenging investment environment exacerbated by the fall in oil prices,” the statement said.
