Kuwait – Mubasher: Ratings agency Standard & Poor’s has reaffirmed its “AA” rating for Arab Investment and Export Credit Guarantee Corporation (Dhaman) and gave a "stable" outlook for the company.
This reflects the Kuwaiti company's “very strong business profile and strong financial profile,” according to a statement.
The revision came under S&P’s revised criteria for multilateral lending institutions (MLIs) and other supranationals.
An autonomous Arab multilateral organisation, established and based in Kuwait since 1974, Dhaman boasts a membership in all Arab states and a number of Arab international organisations. It serves as an export credit agency for the Arab region, supporting foreign direct investments (FDIs) in Arab states.
Dhaman has maintained its high ratings at “AA” with a stable outlook for the tenth consecutive year, said the company’s director-general Fahad Al Ibrahim.
“We continue to witness material growth in our investment guarantee and export credit insurance business volumes backed by solid financial position, despite the prevailing political uncertainties and economic challenges in many countries within the Arab World, being the primary geographical focus of Dhaman’s operations,” he added.
S&P said in its report that its “assessment of Dhaman's standalone credit profile (SACP) is 'aa'. We incorporate no uplift from extraordinary shareholder support into our 'AA' ratings on Dhaman, since the capital base is currently fully subscribed and in the process of being paid-up”.
“The stable outlook reflects our expectation that Dhaman will meet its growth targets while maintaining strong financials as it meets its primary goal of helping service economic growth across the Arab region,” S&P added.
