Fitch: Kuwait Energy on watch

Fitch Ratings said it placed Kuwait Energy plc’s long-term issuer default rating of B- on Rating Watch negative.

Also on negative watch is the B- senior unsecured rating with recovery rating of RR4 on the company’s $250 million 9˝% notes due in 2019.

The negative watch reflects growing liquidity risk, specifically in light of the reduction in available cash balances in recent months, Fitch said.

While the agency said it is aware of company plans to raise additional credit facilities by year-end, these facilities remain unsigned.

S&P said it plans to resolve the watch once more clarity is obtained on Kuwait Energy’s progress in obtaining new funding by end-2016.

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