Markaz’s 5-year senior unsecured bond – ‘BBB’ issue rating affirmed with a stable outlook

Markaz’s 5-year senior unsecured bond – ‘BBB’ issue rating affirmed with a stable outlook

KUWAIT – Kuwait Financial Centre “Markaz” announced that Capital Intelligence Ratings has affirmed the ‘BBB’ issue rating assigned to Markaz’s KWD35mn 5-Year Senior Unsecured Bond. The Outlook on the rating remains Stable.

The issue rating is driven by Markaz’s general creditworthiness. The latter is reflected by the company’s resilient financial metrics in terms of both liquidity and debt, especially as at end-October 2023, given the significant lowering of bank borrowings and moderate leverage. Other supporting factors are the high level of unencumbered assets and the maintenance of substantial funding lines. The rating also reflects the company’s well-established franchise and good reputation in the region, especially in Kuwait. Markaz’s experienced management team is well equipped to continue to effectively navigate the company through the current subdued financial markets.

Markaz has a long-standing reputation as a leading fund manager in Kuwait. Despite some falls in stock values in line with the movement of the financial markets, its holdings of financial investments continued to account for more than half of the asset base as at end H1 2023. A large proportion of these investments were in Kuwait, with some concentration towards financial institutions and the real estate sector. That said, a large proportion of these