Global’s future strategy and strength provides confidence that this is a temporary situation
Al-Ghunaim: Our robust strategies and diversified business model puts us back on the path of growth and success
Global Investment House “Global”, the leading asset management and investment banking firm in the MENA region, responded today to the revision and downgrading of its credit rating by Fitch.
Mrs. Maha Al-Ghunaim, Chairperson & Managing Director commented: “As much as we are disappointed with this revision of our credit rating, we are confident that this is a temporary situation and Fitch will be fully satisfied and will resolve their review shortly”.
She added: “We have already taken a proactive and preemptive step by assigning Commercial Bank of Kuwait as the advisor to renegotiate the terms of our existing credit facilities and have called for a meeting next week with all the lenders”.
Since the inception of Global in 1998, capital markets have witnessed serious corrections such as those in 1998, 2000 and 2006. However, Global was always capable of standing tall. This year has seen a different type of market correction, one where all markets without exception have crashed. The biggest trigger of the recent collapse is the huge ‘credit crunch’ and the fact that many international financial players had leveraged toxic assets”.
It is worth mentioning that Global is a leading investment company with excellent profitability, a strong capital base, low leverage, a very capable management team and a consistently high credit track record. It is the sixth largest listed company in Kuwait by the size of its shareholders’ equity with Assets Under Management of USD 10 billion, total debt of USD 3 billion, over 600 employees and high quality assets, half of which are in Kuwait.
Al-Ghunaim added: “We are certain that our robust strategies and diversified business model will put us back on the path of growth and success in the future. Our business focuses on the GCC and broader MENA (Middle East & North Africa) region which enjoy positive fundamentals and economic indicators, and continue to support vibrant economic activity and growth for at least a three year horizon”.
In the future, more opportunities are expected to arise in investment banking, asset management and brokerage. Global’s diversified business model, strong infrastructure and strong relationships with its clients position it at the forefront to take advantage of these opportunities.
“We are keenly focused on the long-term interests of our shareholders, clients and employees to best position Global for the future,” concluded Al-Ghunaim. “We expect to reach an agreement soon with the lending banks.”
