Kuwait's Global vows to deal with ratings blow

GLOBAL PLEDGE: Kuwait's Global Investment House says the Fitch ratings downgrade due to payment problem will be temporary. (Getty Images)

Kuwait's Global Investment House, whose credit rating on Tuesday was downgraded by Fitch Ratings, has vowed that the situation is a "temporary" one and will be resolved soon.

Maha al-Ghunaim, chairperson and managing director, Global, said: “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 pre-emptive 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."

Global is the sixth largest listed company in Kuwait by the size of its shareholders’ equity with assets under management of $10 billion, total debt of $3 billion, more than 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."

Fitch Ratings downgraded Global’s Issuer Default Ratings (IDR) after the Kuwaiti investment bank failed to meet an obligation on Dec. 15 due to cash flow problems.

The bank’s long-term IDR was cut to C from BBB, its short-term IDR to C from F3, and its individual rating to E from C. All three ratings have been put on Rating Watch Negative (RWN).

IDRs reflect the ability of an entity to meet financial commitments on a timely basis.

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