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

15 November 2022

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 rating is driven by the Company’s resilient financial metrics in terms of liquidity, good debt maturity profile, and moderate leverage. Other supporting factors are 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 continued to effectively navigate the Company through these challenging times.

The key constraint and challenge for Markaz remains the volatility of its earnings, which relates to its substantial portfolio of financial assets measured at fair value through profit and loss (FVTPL). Other…