S&P rates Kuwait Projects BBB-

Standard & Poor's said it assigned BBB- long-term and A-3 short-term corporate credit ratings to Kuwait-based holding company Kuwait Projects Co. KSC.

The outlook is positive, reflecting the potential for significant dividend increases at the company's core holdings and the planned initial public offering of pay-TV platform Gulf DTH LDC.

The ratings primarily reflect the company's intermediate financial risk profile, business diversity and satisfactory and improving liquidity, the agency said.

The ratings are constrained by the concentration of the group's profits in the Middle East and its limited track record in selling large assets. At Sept. 30, the company had about $755 million in gross on-balance-sheet debt, and cash coverage of interest and coverage of interest plus expenses in 2005 were 1.7x and 1.3x, respectively.

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