S&P cuts Kuwait Projects

Standard & Poor's said it lowered the long-term corporate credit rating on Kuwait Projects Co. (Holding) KSC, or Kipco, to BBB from BBB+, and kept all ratings, including the A-2 short-term corporate credit rating, on CreditWatch with negative implications.

"The downgrade reflects our view on Kipco's portfolio characteristics, which we believe have deteriorated in recent years as a result of comparably lower asset liquidity, and an increased proportion of investments which we consider to have weaker credit profiles," S&P analyst Peter Kernan said in a statement.

Ratings reflect adequate gearing at the parent company level, according to the agency.

Ratings are constrained by the company's high asset concentration, relatively low asset liquidity and increased exposure to weaker subsidiaries, the agency said.

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