Kuwait Financial Centre 5-Year Unsecured Bond – Initial ‘BBB’ Rating Assigned with a Stable Outlook

12 November 2020

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has assigned an initial ‘BBB’ rating to Kuwait Financial Centre’s (Markaz) KWD35mn or USD equivalent 5-Year Senior Unsecured Bond. The Outlook on the rating is Stable.

The Issue rating is driven by the Company’s generally sound financial metrics in terms of liquidity and leverage, as well as the continuing flow of management fees and commission income despite the recent decline. Other supporting factors are the Company’s track record of timely debt servicing and repayment capacity, its ability to continue to borrow on an unsecured basis, and the diversification of its lender base in recent periods. The rating also reflects Markaz’s well established franchise and good reputation in the region, especially in Kuwait. The experienced management team has continued to effectively guide the Company, although it is likely to post a net loss this year due to revaluation losses.

The…