Thursday 11 February 2010

Kuwait's KIPCO placed on creditWatch negative on upcoming review



Standard & Poor's Ratings Services said that it had placed its 'BBB+' long-term and 'A-2' short-term corporate credit ratings on Kuwait-based operating holding company Kuwait Projects Co. (Holding) KSC (KIPCO) on CreditWatch with negative implications.

The CreditWatch placement reflects our view on KIPCO's portfolio characteristics, which we believe have weakened, and which may have negative implications on our assessment of the company's stand-alone credit profile (SACP) in an upcoming review.

The placement also reflects a possible revision of our view on what we currently see as a 'moderate' likelihood of extraordinary support from its majority owners, currently factored into the ratings.

2 comments:

  1. This is just so unfair.

    KIPCO has a well demonstrated business model. It buys assets from affiliates who make a profit and then a year or so later it sells those assets back to its affiliates and makes a profit in the process.

    I am told that KIPCO was the inspiration for Dubai Inc.'s land deals.

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  2. So do you think KIPCO will follow Dubai's lead and dismiss S&P?

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