NIG gets poor Moody's ratings
Dubai, January 22, 2009
Moody's Investors Service has downgraded the long-term issuer rating of National Industries Group Holding (NIG) and the rating on the $475 million sukuk issued by NIG Sukuk Limited to Baa3 from Baa2.
The ratings remain under review for possible downgrade, said a statement from the ratings agency.
Following sharp declines on Kuwait's stock market, which had further weakened NIG's already weak market value leverage (42 per cent September 2008 end) during the fourth quarter of 2008, Moody's reviewed NIG's ratings for potential downgrade.
Scope of the review has been the steps being taken by management to bolster the weak leverage and also adopt a greater share of committed longer term facilities which had historically relied on short-term maturities.
Moody's concluded that the decline of the portfolio's value consisting of subsidiaries, strategic and financial investments combined with the company's liquidity profile suggest that the ratings are no longer commensurate with a Baa2 rating resulting in the one-notch downgrade.
Kuwait-based NIG is a publicly listed investment holding company, and one of the largest publicly traded companies in Kuwait.
Its business includes strategic and financial stakes in companies across Kuwait and the GCC, focusing primarily on building materials, specialist engineering, petrochemicals, finance, real estate, oil & gas services and energy sectors.-TradeArabia News Service