National Industries Group Holding – Issue Rating on KWD50mn Bond Confirmed

9 August 2022

Capital Intelligence Ratings (CI Ratings or CI) has confirmed the ‘BBB-’ issue rating assigned to the upcoming KWD50mn senior unsecured bond issued by National Industries Group Holding (NIGH) following receipt of the final Terms & Conditions. The Outlook on the rating is Stable. The proceeds of the planned issue will be principally used to retire outstanding bank debt.

The main factors supporting the rating are NIGH’s strong earnings performance at the consolidated level in 2021 and Q1 22, together with a successful April 2022 rights issue that raised KWD105mn in fresh capital. Together, these have significantly raised NIGH’s equity base and lowered overall net borrowings, reducing both leverage and debt-related metrics – although both nonetheless remain at levels that are considered higher than desirable. The rating is also supported by the sound operating profitability at most subsidiary and associated companies, by good effective liquidity…