Gulf Finance House - S&P Increases Rating to CCC

 

S&P announced that he had raised the rating on S&P from SD (selective default) to CCC-/C with a negative outlook.

Negative factors affecting the rating were:

1. Weak liquidity
2. Debt repayments coming due in the near term
3. Concerns about ability of GFH to implement its plans to improve its liquidity or revenues
4. Lack of longer term financing

S&P would raise GFH's rating if it is able to:

1. Raise additional sources of liquidity, including longer term financing
2. Develop new business activity as operating cashflow is minimal.