Moody's may cut National Industries Group

Moody's Investors Service said it placed the Baa2 long-term issuer rating of National Industries Group Holding NIG under review for possible downgrade, along with the rating on the $475 million sukuk issued by NIG Sukuk Ltd.

The action follows the significant deterioration of the company's portfolio value given the declines and volatility in local Kuwaiti and global financial markets, Moody's said.

The company's market value leverage as of Sept. 30 amounted to 42%, significantly above an expectation of 30% for the rating, following sharp declines on Kuwait's stock market, the agency said.

Moody's said its review will focus any corrective action the company may take to restore its financial profile to levels more commensurate with its rating.

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