Capital Intelligence maintains investment grade rating for Kamco Invest with stable outlook

Capital Intelligence maintains investment grade rating for Kamco Invest with stable outlook

Kuwait City: Kamco Invest, a regional non-banking financial powerhouse with one of the largest AUMs in the region, announced today that Capital Intelligence Ratings maintained its Long- and Short-Term Corporate Ratings of Kamco Invest at ‘BBB’ and ‘A3’, respectively. The outlook on the ratings remains ‘Stable’ primarily due to Kamco Invest’s leading position in the asset management industry, as well as the Company’s strong funding and liquidity base.

Capital Intelligence indicated that most financial markets worldwide had suffered from the repercussions of the pandemic, leading to major Covid-related profit and revenue drops especially in Q1 2020. Even though most of the lost ground was recovered in subsequent quarters, markets were still down for the whole year. Kamco Invest recorded a loss during 2020, which was then backed by strong performance and a record profit year in 2021.

In its report, Capital Intelligence highlighted two key credit strengths. The first strength being Kamco Invest’s strong funding and liquidity base. With funding mainly derived from its KWD40mn bond issue and a KWD5mn long-term bank loan, Kamco Invest enjoys considerable flexibility with its future funding plans.

Aside from its funding and liquidity base, Capital Intelligence stated that Kamco Invest’s second and main credit strength is the