S&P: Kuwait Projects unchanged

Standard & Poor's said its ratings on Kuwait Projects Co. (Holding) K.S.C. (BBB-/positive/A-3) are unaffected by an announcement that the company will sell its 37% stake in National Mobile Telecommunications Co. K.S.C. (Wataniya) to Qatar Telecom QSC.

According to the agency, Kuwait Projects' stake is part of a 51% stake in Wataniya being sold for a total consideration of Kuwaiti dinar 1.1 billion.

The agency said that the transaction will considerably strengthen Kuwait Projects' financial profile and releases capital for further investments.

It will, however, temporarily reduce the diversity of the company's portfolio and increase uncertainties about potential future acquisition and execution risk, S&P noted.

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