National Industries Group Holding – KWD40mn Senior Unsecured Bond Rating Affirmed, with a Stable Outlook

8 August 2024

Capital Intelligence Ratings (CI Ratings or CI) has affirmed the Issue Rating of ‘BBB-’ assigned to the KWD40mn senior unsecured bond maturing in 2027 issued by National Industries Group Holding (NIGH). The Outlook on the rating is Stable.

The issue rating on this senior unsecured bond is in line with CI’s assessment of the financial strength of the issuer, NIGH. The rating balances negatives such as earnings volatility and in particular the high level of gross debt with management’s demonstrated ability to manage this volatility; while particular periods may show falls in profitability ratios, there has been no overall negative trend.

Satisfactory effective liquidity and the continued ready access to both debt capital markets and new long-term banking facilities are crucial rating drivers. The other main factors that support the rating are sound profitability at subsidiaries and associates, and the steady growth in dividends being paid to the parent…