United Real Estate – KWD80mn Senior Unsecured Bond Rating Affirmed, with a Stable Outlook

7 March 2024

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the issue rating on United Real Estate Company’s (URC) KWD80mn senior unsecured bond due in 2028 (comprising a Fixed Rate Tranche and a Floating Rate Tranche) at ‘BBB-’. The Outlook for the rating is Stable.

The rating and outlook for the bond are driven by CI Ratings’ assessment of the fundamental credit strength and general repayment capacity of URC. The Bonds are considered senior unsecured obligations and rank pari passu in priority of payment with other outstanding senior unsecured obligations of URC.

The key driver for the rating is the ownership of URC by Kuwait Projects Company Holding K.S.C. (Kipco), one of the largest holding companies in the MENA region, with significant ownership interests in over 60 companies operating across 24 countries. URC is an integral part of Kipco as the main real estate arm, and the Group’s support continues to be demonstrated…