KIPCO’s credit enhancement strategies place its ratings on a positive trajectory
- mesharialduhaim2
- Dec 21, 2025
- 2 min read
‘Rating actions reaffirm the success of KIPCO’s credit enhancement strategies & proactive liability management initiatives’ says Group CFO
Fitch Ratings revised KIPCO’s – Kuwait Projects Company (Holding) – rating outlook to Stable from Negative and affirmed its Long-Term Issuer Default Rating at BB- on December 16. Earlier this month, Capital Intelligence affirmed KIPCO’s Long Term Foreign Currency Rating at BB+ and raised its rating outlook to Positive from Stable.
Fitch’s rating action was primarily driven by improved leverage reflected by reduction in net loan-to-value (LTV) ratio from 51.2% at year-end 2024 to less than 40%. Capital Intelligence’s revision of the rating outlook to Positive was attributable to a downward trend in both gross and net debt at the parent company, a solid management team at the holding level that is driving performance improvement in the operating companies, improving debt structure by maturity and diversity of sources, satisfactory financial strength metrics of main portfolio companies, as well as good liquidity and short-term debt repayment capacity.
Commenting on recent credit rating actions, Mr. Sunny Bhatia, KIPCO’s Group Chief Financial Officer, said:
"These rating actions are a strong endorsement of the transformation we have been driving at KIPCO in the recent years and reaffirm success of KIPCO’s credit enhancement strategies and proactive liabilities management initiatives. Since 2022 we have focused on strengthening our balance sheet, improving our debt structure, diversifying our funding sources, proactively managing debt maturities and working closely with our portfolio companies to enhance their financial performance and resilience both by pursuing organic value creation initiatives and inorganic strategies including entering new partnerships and merger and acquisitions (M&A) initiatives. We have made major divestments and reorganized ownerships of various group entities to take advantage of group synergies and accelerate stakeholders value creation.”
