Kuwait Projects Company Sukuk Ltd Rating action by Fitch Ratings (Fitch) (6700X)

TIDMFL49

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: [phone]

Email: [e-mail]

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

UPDBSBDDXUDDGXB

(END) Dow Jones Newswires

December 21, 2023 09:55 ET (14:55 GMT)