Kuwait Financial Centre 5-Year Unsecured Bond Rating Affirmed with a Stable Outlook

11 November 2021

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

The Issue rating is driven by the Company’s resilient financial metrics in terms of liquidity and leverage, as well as the good recovery of management fees and commission income in H1 21. Other supporting factors include the lengthening of the debt maturity profile, the high level of unencumbered assets, and the maintenance of substantial unutilised but committed funding lines. The rating also reflects Markaz’s well established franchise and good reputation in the region, especially in Kuwait. The experienced management team has effectively navigated the Company through the pandemic and the fall of the stock market, with only a modest net loss in 2020, while a strong rebound was seen in H1 21.

The main challenge for…