Kamco Investment Company K.S.C.P. – Ratings Affirmed

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) of Kamco Investment Company K.S.C.P. (Kamco) at ‘BBB’ and ‘A3’, respectively. The Outlook on the ratings remains Stable.

The two most important credit strengths that support the rating continue to be Kamco’s market leadership position in terms of assets under management (AUM) within the Kuwait asset management sector and its funding and liquidity base; the latter is based on a series of long-standing bank lines (from non-related party banks) and on readily saleable fair value through profit or loss investments. Kamco continues to enjoy considerable flexibility in its funding plans given existing substantial cash balances, plus committed but undrawn bank lines.

The main credit challenge is earnings volatility. While Kamco is able to post a net profit in most years (the last negative year…