Fitch Ratings has affirmed Kuwait Projects Company’s long-term issuer default rating at BB- with a stable outlook, the Kuwaiti investment holding company said.
Fitch also assigned a BB- rating to KIPCO’s updated euro medium-term note program, in line with the issuer rating, according to a statement from the company. KIPCO also disclosed the rating to Boursa Kuwait on Thursday.
The rating agency cited KIPCO’s diversified portfolio, stable dividends through the cycle, its record of long-term investment returns and its financial flexibility, the company said.
Liquidity
KIPCO holds cash of $1.1 billion, enough to cover debt maturities into early 2028, according to Fitch’s assessment as described by the company.
Fitch expects the group’s net loan-to-value ratio to stay below 45% over the next four years. KIPCO targets a ratio of 40%.
Burgan Bank and Saudi dairy producer SADAFCO, KIPCO’s two largest holdings, account for 41% of the portfolio’s gross asset value, Fitch noted.
The agency also pointed to the 2024 sale of Gulf Insurance Group and other asset sales in 2025, which helped cut debt and improve liquidity.
“The rating of our updated EMTN Program further reinforces our access to international debt capital markets,” said Moustapha Chami, KIPCO’s group chief financial officer.
