Global's Support rating is affirmed at '5' and the Support Rating Floor is affirmed at 'No Floor'.
The Long- and Short-term IDRs and Individual rating are placed on Rating Watch Negative (RWN).
In addition, Fitch has downgraded Global's Long-term local currency IDR to 'C' from 'BBB' and the expected rating on its KD50m fixed/floating Long-term local currency bond to 'CC' from 'BBB' and assigned a Recovery Rating of 'RR4'.
The final rating on the notes is contingent on the receipt of final documentation conforming materially to information already received.
The ratings assigned to Global's $2bn EMTN programme have also been downgraded to 'CC' from 'BBB' and 'C' from 'F3', which reflects Fitch's current assessment for recoveries for any issuance under the programme of 'RR4'.
The rating action follows Global's inability to meet an obligation due on 15 December 2008 due to cash flow problems.
Fitch understands that failure to meet this obligation within 72 hours would result in the company defaulting on this obligation.
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Fitch downgrades Global Investment House's IDR to 'C'; rating watch negative
- Kuwait: Tuesday, December 16 - 2008 at 11:37
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Fitch Ratings-London-15 December 2008: Fitch Ratings has downgraded Kuwait-based Global Investment House's (Global) Long-term Issuer Default Rating (IDR) to 'C' from 'BBB', Short-term IDR to 'C' from 'F3', and Individual rating to 'E' from 'C'.
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Posted by Ehab Al-AbbadiTuesday, December 16 - 2008 at 11:37 UAE local time (GMT+4)
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Global is in negotiations with local financial institutions to refinance the above facility. Fitch will resolve the RWN on the Long- and Short-term IDRs and Individual rating following the outcome of these negotiations. Fitch understands that other obligations will also fall due in December.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
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