Fitch Ratings, a major international rating agency has assigned Global Investment House “Global” ratings of Issuer Default ‘BBB’, a stable outlook, short-term ‘F3’ and Individual ‘C’, Global announced today.
In its report, Fitch cited strong franchise, sound profitability, and moderate risk profile as key drivers of Global’s Investment Grade (Stable Outlook) rating.
“These ratings reflect Global’s strong franchise in regional corporate finance and asset management, sound profitability and capital base and moderate risk profile. They also reflect the company’s rapid growth and some sensitivity to the regional economy and stock markets,” the Fitch report said.
Global’s ‘issuer default rating’ of BBB is primarily driven by its individual ratings rather than the potential support from the authorities and therefore is not strictly comparable with the ratings of commercial banks.
Global Chairperson and Managing Director, Mrs. Maha Al-Ghunaim, expressed the company’s pride and resounding satisfaction with the first rating for the company, which highlights its commitment towards excellence as a regional investment bank with a value added profile in the GCC and MENA regions capital markets.
“Since our inception in 1998, we have achieved growth in all key financial performance indicators, reflecting success of our core strategies and business model accompanied by moderate risk taking leading to an investment grade rating,” she said.
The company has been vigorous in developing the regional capital markets and has managed several private placement transactions with a total amount exceeding USD 5.6 billion. On the asset management side, Global manages over 30 investment funds and the assets under management have reached KD2.130 billion (USD7.355 billion) as of 31 March 2007.
Global has recently received “Best Equity House in Kuwait” by Euromoney Magazine in 2005 and 2006, “Deal of the Year Award” by The Banker Magazine and the "Best Investment House in Kuwait" by Islamic Finance Real Estate (IREF-ME) in 2006.
One of Global strategic goals is to be the “preferred investment bank in the region, and this rating “puts us closer to achieving our ambitious goals,” Al-Ghunaim concluded.