S&P reaffirms KIPCO's BBB+/A2/Stable rating

Standard & Poor's (S&P) have also reaffirmed KIPCO's short term credit rating of A2.

These ratings confirm KIPCO's status as S&P's highest-rated private corporate sector company within the MENA region.

In its latest rating report on KIPCO, S&P said the ratings 'reflect the financial flexibility offered by the company's sizeable portfolio of listed equity investments and the good average credit quality of its investments'.

S&P said that KIPCO's holdings continue to have good growth potential from regional expansion and healthy economic growth in the GCC.

S&P added that KIPCO's holdings in companies that control highly diversified investment portfolios, such as United Gulf Bank and the Gulf Insurance Company, add to the diversity of the KIPCO Group.

Highlighting KIPCO's current position, S&P said that 'despite drastically falling equity values, the company's financial profile remains relatively strong with net debt representing (as of October 23rd, 2008) about 16% of the company's estimated portfolio value'.

This is 'adequately in line with the expectations of the rating', S&P said.

As to the outlook for the company, S&P said their Stable rating was awarded because they expect KIPCO to 'maintain sufficient balance sheet flexibility' and the company 'will be very careful and prudent in its investment selection process to maintain investment portfolio quality.'

Commenting on the S&P rating, KIPCO's Executive Vice Chairman, Mr Faisal Al Ayyar, said:

"These unchanged S&P credit ratings are further recognition that our business strategy is built upon the sound principles of financial discipline, transparency and strong corporate governance. The rating also reflects our consistent track record over the last 17 years where we've built a portfolio of robust and well-managed businesses. KIPCO is in the business of creating and growing companies across the entire MENA region - and we've been very successful at doing this. This growth has not been the result of luck. It is the result of the type of conservative financial planning for which we've become renowned. As the highest-rated private corporate company in the region, KIPCO takes its leadership position very seriously. In troubled times like these, leaders have to lead and KIPCO is doing precisely that."

he said.

In July this year, in its first ratings report on KIPCO, Moody's awarded KIPCO a Baa1 long-term credit rating and a Prime-2 short-term rating with a Stable outlook.

This makes KIPCO the highest rated private sector corporate company by Moody's in the MENA region.