Moody’s downgrades Kipco

Moody’s Investors Service said it downgraded Kuwait Projects Co., or Kipco’s, Baa3 long-term and assigned a Ba1 corporate family rating and a Ba1-PD probability of default rating.

Moody’s also downgraded to Ba1 from Baa3 the ratings on the backed senior unsecured bonds due in 2023, 2026 and 2027 issued by Kuwait Projects Co SPC Ltd.

“Today’s action reflects the view that Kipco’s cash burn will continue over the next 12-18 months because of negative free cash flows, a feature which we no longer consider consistent with an investment-grade rating,” said Julien Haddad, a Moody’s vice president and senior analyst and local market analyst in the release.

The outlook is negative.

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