S&P alters GFH view to positive

S&P said it revised its outlook for GFH Financial Group BSC to positive from stable and affirmed its B- issuer rating. The agency also affirmed the B- rating on the sukuk issued by GFH Sukuk Co. Ltd. and sponsored by GFH.

“GFH's business performance rebounded in 2021, with a group return on equity (ROE) of 9.0% in 2021, compared with 4.7% in 2020.This improvement is largely spurred by higher treasury business volumes, where the group generates a positive spread from investment in predominantly regional sovereign bonds and structured products. Investment banking transactions also proved resilient since customers hungry for cash yields retained their appetite for income-generating commercial real estate in Europe and the U.S.,” S&P said in a press release.

The agency said it sees GFH operating with “somewhat stronger liquidity than before.”

The positive outlook indicates GFH's profitability will stay resilient against evolving operating conditions and valuation risks in the next 12 months. It also considers the potential for GFH to lower its exposure to real estate in the near future, S&P said.

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