S&P rates Kuwait Energy & bond B-

Standard & Poor's said it assigned its B- long-term corporate credit rating to Kuwait Energy plc.

The outlook is stable.

At the same time, the agency assigned its B- long-term rating to Kuwait Energy's proposed five-year bond.

S&P said the rating reflects its assessment of Kuwait Energy's business risk profile as "vulnerable" due to its view of the company’s high concentration of assets in only a few fields, and fairly low production by international standards of about 22,500 barrels of oil equivalent per day.

It also reflects the country risk related to operating in Egypt, Iraq and Yemen, and the declining production curve of Egyptian fields, the agency said. The uncertainty over the timing of crude oil payments from EGPC, the national oil company of Egypt, is of particular concern.

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