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Kipco bond rating upgraded to BBB+

Kipco, Kuwait's largest private sector investment company, has major activities in financial services, media and telecommunications, as well as real estate, industry, and management and advisory, in a portfolio of more than 55 companies throughout the Middle East and North Africa.

In its rating report, Capital Intelligence said Kipco was underpinned by mature group companies with strong and stable earnings records; rapidly growing newer Group companies; high quality management at all levels, greatly improved funding structure; and stronger profits in 2003 and 2004 with a very strong outlook for 2005.

Faisal Al Ayyar, Kipco managing director and chief executive officer, said: "We are delighted to have our achievements recognised by Capital Intelligence. This reflects our consistently strong results across the spectrum of our businesses, as well as our solid financial standing and excellent future prospects."

KIPCO's profits in 2004, its 13th year of unbroken profitability, jumped 39 per cent to a record high of KD 25.24 million ($85.64 million), from KD18.2 million ($61.8 million) in 2003, driven by strong performances in its company portfolio.

2005 half-year net profit surged 31 per cent to KD17.1 million ($58.6 million), an increase of KD4.0 million ($13.7 million) compared to KD13.1 million ($ 44.8 million) in the same period last year.

Full year 2005 net profit is forecast to rise 33 per cent to KD33.5 million ($114.7 million), resulting in a higher return on equity of 18 per cent against 14.8 per cent in 2004, and return on assets of 8.6 per cent compared to 7.1 per cent in 2004.