Housing Finance Company, ISKAN, announced today that Capital Intelligence (CI), a leading credit analysis and rating company, has re-evaluated ISKAN’s KD 25 million bond rating to (BB-) from (BB+).
In its report issued last May, CI upgraded the company’s Short term debts rating to (A1+) from (A1), with a “Stable” outlook for Iskan sovereign rating.
Sheikh Abdullah Jaber Al-Ahmed Al-Sabah, the company Chairman said, “ISKAN’s management believes that the bond rating, supported by the short term rating and the sovereign outlook,” pointing that the report “comes at a time when ratings agencies are conservative in their evaluations.”
The re-evaluation of the 2005 Bonds to “BB-“ is positive, amidst the current global economic climate, and it reinforces Iskan’s obligation towards the bond holders, specially as the company sailed through the worse according to the set plans, he added.
The Chairman explained that one of the factors affecting CI’s rating is “hedging” and the uncertainty towards the economy’s outlook in the long-run. This is coupled by banks’ strict lending policies which ultimately have limited to -great extremes- financing streams in addition to the absence of viable alternatives.
“The upgrade to (A1+) from (A1) on Iskan’s short term debts reflects the company’s solid financial status, in a time when credit markets witnessed a slowdown both on the local as well as the international levels” Sheikh Abdullah said.
He expected future evaluations to improve on the foot hills of Iskan’s debts restructuring plans, present and future plans.
Iskan’s Chairman stated that the company had been conservative in its assets evaluation and management as well as creating enough provisions which will help it enhance the quality of those assets to provide a solid foundation for both its credit and loan portfolios.
This will also support the company’s financial position and give it capacity to fulfill its debts in a balanced way.
Sheikh Abdullah concluded by saying that despite the economic slowdown, “we are optimistic in regards to our cash revenue streams stemming from our operations and investment in 2009.”