the credit rating agency Standard & Poor's Global downgraded the Kuwait Projects Holding Company (KIPCO) rating from (BB + / B) to (BB / B), and the regional rating from ( gcA) to (+ gcBBB), with a negative outlook.
KEPCO said in a statement to the Kuwaiti Stock Exchange, today, Tuesday, that the agency's report stated that the main companies in the group witnessed significant weakness in performance this year; This led to more pressure on the company's financial performance, investment portfolio value and debt ratios compared to total assets.
The Standard & Poor's report indicated that so far the sale of the whole or part of KIPCO's stake in OSN has not been completed. Uncertain especially given OSN's poor performance in recent years.
The report stated that, as of September 30, 2020, the ratio of loans to market value of investments adjusted by the rating agency is much higher than the ratios set by 45%, and approaching The 60% threshold.
and S&P does not believe that KEPCO can maintain less than 45% on a sustainable basis in the absence of a successful sale to OSN, even in the case of pumping heads Potential funds from the main shareholder, Al Fotouh Group.
The agency believes that the liquidity position of KIPCO is strong. It also believes that the company is managing liquidity proactively and has a proven track record in refinancing its debt maturities in advance and does not have any debt maturities Before 2023.
reflects the negative outlook from the agency's point of view regarding the large and continuing pressure on the ratio of loans to the market value of KIPCO's investments and the credit quality of the investment portfolio.
KIPCO said that Standard & Poor's rating agency is not expected to have a material impact on the company's financial position.
KEPCO had turned to profit at the end of the first nine months of this year with a value of 15.11 million dinars, compared to losses for the same period last year of 20.98 million dinars.
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