Kuwait – Mubasher: Fitch Ratings downgraded Kuwait Energy’s long-term issuer default rating (IDR) to “CCC” from “B-”, according to a statement.
Fitch also downgraded the company’s senior unsecured rating on its 9.5% notes worth, due in 2019, to “CCC” from “B-”.
The rating agency believes the probability of default increased due to market conditions not allowing completion of the company’s initial public offering (IPO) in the first half of 2017
Liquidity over the next 12 months is expected to stay below $50 million, with no immediately available undrawn credit facilities,
“The intention to launch an IPO is still being considered, as well as other financing arrangements, with more clarity expected later on in the year,” the statement added.
