Moody’s lowers Investcorp view to negative

Moody’s Investors Service said it changed Investcorp SA’s outlook to negative from stable, along with the outlook on Investcorp Capital Ltd.’s view to negative from stable.

Moody’s also said it affirmed Investcorp’s and Investcorp Capital’s Ba2 backed senior unsecured debt ratings in addition to Investcorp Capital’s provisional Ba2 backed senior unsecured medium-term notes rating. All of the debt is guaranteed by Investcorp Bank BSC.

The outlook revisions reflect a concern that group is face increasing difficulties in raising new capital or reinvesting clients’ capital in the coming years due to risk that prolonged low oil prices will result in substantially lower government spending, the agency said.

Moody’s said it expects Investcorp’s capital raising to be impacted by the prolonged drop in oil prices due to client concentration in the Gulf region.

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