The global credit rating agency, Moody's, has downgraded Kuwait Projects Holding Company (KIPCO) from the (Baa3) category to (Ba1), with a negative outlook.
KIPCO said in a statement to the Kuwaiti Stock Exchange, today, Tuesday, that the (Ba)-rated liabilities are considered speculative elements and are subject to large credit risks, while number (1) shows the arrangement The commitment is at the higher end of this rating class.
and the company clarified that the downgrade is not expected to have a material impact on KIPCO's financial position.
and indicated that negative cash flows are expected to continue in 2021. This is mainly due to the decrease in dividends from the group's core companies and the significant deterioration in the loan-to-value ratio. The market for the company's investments in 2020, reaching 45% from the level of 35.8% in 2019, which reflects the value of the investment and the decrease in cash, and the lack of clarity of the time required for the transformation of OSN to profitability or attracting strategic partners.
still reflects KIPCO's Ba1 portfolio of companies strongly present in the financial services sector and paid encrypted satellite channel services in the Middle East and North Africa region.
The rating also reflects the company's maintenance over the years on strong liquidity, and it currently stands at more than $ 600 million at the level of the parent company despite its recent decline, as well as the ability to Always refinance debts before maturity in order to eliminate financing risks, in addition to supporting the main shareholder of the company.
In mid-December, Standard & Poor's had downgraded KIPCO's rating from (BB + / B) to (BB / B). Regional classification from (gcA) to (+ gcBBB), with a negative outlook.
