REG - Kuwait ProjectCo SPC - Rating action by Moody’s

China MotorAnnouncement

17/12/2024 09:15

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RNS Number : 3870Q  Kuwait Projects Co SPC Limited  17 December 2024

Kuwait Projects Co SPC Limited

Rating action by Moody's

Kuwait Projects Company (Holding) K.S.C.P. (KIPCO), in its capacity as the
Guarantor of Kuwait Projects Co SPC Limited, announced that Moody's Ratings
(Moody's) has downgraded KIPCO's Corporate Family Rating (CFR) to B1 from Ba3
and the Probability of Default Rating (PDR) to B1-PD from Ba3-PD.
Concurrently, Moody's downgraded to (P)B1 from (P)Ba3 the provisional ratings
assigned to the backed senior unsecured $3 billion Euro Medium Term Note
(EMTN) program issued by Kuwait Projects Co SPC Limited and to B1 from Ba3 the
ratings on the backed senior unsecured bonds due in 2026 and 2027 issued by
Kuwait Projects Co SPC Limited. Moody's also affirmed Kuwait Projects Co SPC
Limited's (P)NP backed other short term rating. The outlook on all entities
remains negative.

 

As per Moody's announcement, the rating action reflects Moody's view that
KIPCO's market value leverage (MVL) will remain above 45% during 2024 and
2025, which is higher than what they originally anticipated. Moody's expect
that FFO interest coverage to remain weak in 2024 at 0.8x and to improve
slightly in 2025 to around 1x. The report says that KIPCO's liquidity remains
adequate for the next 12 months, but there are material bond maturities of
$500 million each due in October 2026 and February 2027. While Moody's expects
that the company will raise financing to redeem these well ahead of time,
delays in raising the required funding would materially weaken the company's
liquidity.

 

The report also states that KIPCO's B1 CFR continues to reflect (1) the
portfolio of companies' strong market positions (2) pro-active steps being
taken by KIPCO's management to strengthen operating and financial performance
of major holdings (3) around 60% of the portfolio value being comprised of
publicly listed investments and (4) shareholder linkages with Kuwait's ruling
family.

 

KIPCO has notified Moody's of its intent to voluntarily withdraw from all
Moody's ratings.

 

For further information, please contact:

Investors, Press and Media:

Eman Al-Awadhi

49(th) Floor

KIPCO Tower, Khaled Bin Al-Waleed St, Sharq

P.O. Box 23982

Safat 13100

Kuwait

Tel: +965 2294 3416, Email: eman.alawadhi@kipco.com

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