REG - Kuwait Projects Co - Rating action by Fitch Ratings (Fitch)

Kian ShenAnnouncement

21/12/2023 16:00

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RNS Number : 6700X  Kuwait Projects Company Sukuk Ltd  21 December 2023

 

Kuwait Projects Company Sukuk Limited

 

Rating action by Fitch Ratings (Fitch)

Kuwait Projects Company (Holding) K.S.C.P. (KIPCO), the Obligor of Kuwait
Projects Company Sukuk Limited, announced that Fitch Ratings has downgraded
its Long-Term Issuer Default Rating (IDR) to 'BB-' from 'BB'; the Outlook is
Stable.

As per the Fitch's announcement, the downgrade reflects the company's high
leverage with Net LTV (loan-to-value) at 41.4% expected at end-2024. Further,
in Fitch's opinion, KIPCO's weighted average portfolio credit strength by
equity value is relatively weak at 'b+' driven by Fitch's assessment of credit
quality of its subsidiaries and weak recent profitability within its banking
and financial sector.

The report also says that KIPCO's rating is supported by a combination of
transformed portfolio with increased diversification across several industries
and presence in Middle East & North Africa (MENA) region, established
track record of long-term returns, significant influence over the majority of
companies in the portfolio, and stable dividend flow from the portfolio
companies through-the-cycle. The report also recognized the Company's success
in refinancing its debt maturities and monetizing its investments.

 

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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