Fitch lowers Investcorp

Fitch Ratings said it has downgraded the long- and short-term issuer default ratings of Investcorp Bank BSC and its subsidiaries Investcorp SA and Investcorp Capital Ltd to BB+ and B.

The long-term issuer default ratings remain on rating watch negative, the agency said, adding that the downgrade reflects Investcorp's weakened capital position and Fitch's concerns regarding its ability to raise additional capital to maintain an ample cushion around earnings volatility.

To date, capital commitments have not yet been sufficient to maintain its current ratings, a key rating driver that Fitch noted in its last commentary on Feb. 12.

Fitch said it recognizes that the firm has aggressively reduced leverage and exposure to hedge funds however; the firm faces significant debt maturities over the next two years and refinancing opportunities have been more difficult in this environment.

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