Moody's changes outlook on KIPCO's ratings to stable

(MENAFN- Arab News) Moody's Investors Service has changed to stable from negative the outlook on Kuwait Projects Company (KIPCO)'s Baa3 long-term issuer rating and P-3 short-term issuer rating. Concurrently Moody's stabilised the outlook on the Baa3 debt instrument ratings on bonds (due in 2016 2019 and 2020) issued by Kuwait Projects Co. (Cayman) under a $2 billion euro medium-term note (EMTN) programme as well as the issuer's provisional (P)Baa3/(P)Prime-3 (P)P-3 ratings. At the same time Moody's has affirmed these ratings.

"The stable outlook and affirmations are prompted by KIPCO's successful efforts to de-lever persistent improvements in the financial performance of its media assets and the company's efforts to proactively pre-fund debt maturities" says Martin Kohlhase a Moody's Vice President senior credit officer and local market analyst for KIPCO.

The rating action primarily reflects improvements to KIPCO's market-based value leverage (MVL) metric that has dropped to around 20 percent (versus 25 percent at fiscal year ended 2013) because of the higher valuation of its traded equity investments. The rating action also reflects improvements in the financial performance of KIPCO's holding in the Panther Media Group Ltd. (PMGL)/OSN media asset.