Fitch affirms KIPCO's 'BB-' rating with stable outlook

30/10/2026 03:19 AST

KIPCO - Kuwait Projects Company (Holding) - announced that Fitch Ratings has affirmed the company's Long-Term Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook, reflecting its well-diversified asset portfolio, stable through-the-cycle dividends, track record of long-term investment returns and financial flexibility. Fitch also assigned a 'BB-' rating to KIPCO's updated Euro Medium Term Note (EMTN) Program, in line with the company's Long-Term Issuer Default Rating.

The affirmation comes despite challenging regional conditions, with Fitch highlighting the resilience of KIPCO's diversified portfolio across multiple sectors in the MENA region in mitigating the impact of the regional conflict on asset valuations and operating performance. Fitch also cited the Group's history of asset monetization, its influence over portfolio companies, and its supportive shareholders as key reasons for the affirmation. Fitch noted the strong credit quality of KIPCO's two largest holdings, Burgan Bank and SADAFCO, which together account for 41 percent of the portfolio's gross asset value, and observed that many of the Group's portfolio companies are market leaders in their respective countries.

Fitch recognized KIPCO's active portfolio management and demonstrated ability to reduce leverage through strategic asset monetization. The sale of Gulf Insurance Group in 2024 and other asset monetizations in 2025 contributed to debt reduction and improved liquidity. The agency also highlighted KIPCO's substantial liquidity position, with cash balances of $1.1 billion, sufficient to cover debt maturities into early 2028. Fitch expects the Group's net loan-to-value (LTV) ratio to remain below 45 percent over the next four years, with potential improvements in asset valuations supporting a reduction towards the 40 percent target.

Commenting on the rating, Moustapha Chami, KIPCO's Group Chief Financial Officer, said: "The affirmation of our credit rating amid challenging regional conditions is a clear endorsement of the resilience of our diversified portfolio and the financial discipline underpinning our strategy. Our focus on active portfolio management, strategic asset monetization and prudent debt management has strengthened our liquidity and financial flexibility, enabling us to navigate market uncertainties while meeting our financial commitments. The rating of our updated EMTN Program further reinforces our access to international debt capital markets. We remain committed to strengthening our balance sheet, optimizing our portfolio and building sustainable long-term value for our shareholders."

Kuwait Times