Fitch downgrades Kipco

Fitch Ratings said it downgraded Kuwait Projects Co. Holding KSCP's (Kipco) long-term issuer default rating to BB- from BB.

“The downgrade reflects the company's high leverage, with a net loan-to-value (LTV) ratio at 41.4% expected at end-2024 and stressed gross LTV at 66.6% at end-2024. We expect that debt will remain elevated in our forecast, which is only somewhat mitigated by the company's debt reduction target. Kipco's weighted average portfolio credit strength by equity value is relatively weak at b+, driven by Fitch's assessment of credit quality of its subsidiaries and weak recent profitability within its banking and financial sector,” the agency said in a press release.

The outlook is stable.

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