D 475 million of rated
sukuk affected
DIFC, January 19, 2009 -- Moody's Investors Service today downgraded the long-term issuer rating of National Industries Group Holding NIG National Industries Group Holding NIG (S.A.K.) and the rating on the USD 475 million sukuk issued by NIG Sukuk Limited to Baa3 from Baa2. The ratings remain under review for possible downgrade.
Following sharp declines on Kuwait's stock market, which had further weakened NIG NIG 's already weak market value leverage (42% per September 2008
end) during the fourth quarter of 2008, Moody's reviewed NIG NIG 's ratings for potential downgrade. Scope of the review has been the steps being taken by management to bolster the weak leverage and (ii) to adopt a greater share of committed longer term facilities which had historically relied on short-term maturities.
Moody's concluded that the decline of the portfolio's value consisting of subsidiaries, strategic and financial investments combined with the company's liquidity profile suggest that the ratings are no longer commensurate with a Baa2 rating resulting in the one-notch downgrade.
Moody's has left the ratings under review for further possible downgrade as we continue to focus on the steps being taken by the company to strengthen its financial and liquidity profile.
Moody's rates NIG NIG in accordance with its Global Rating Methodology for Investment Holding Companies, published in October 2007 which can be found at www.moodys.com in the Credit Policy & Methodologies directory, in the Ratings Methodologies subdirectory. Other methodologies and factors that may have been considered in the process of rating NIG NIG can also be found in the Credit Policy & Methodologies directory. Moody's last rating action on NIG NIG was on November 26, 2008, when the rating agency placed the ratings under review for downgrade.
National Industries Group ( NIG NIG ), based in Kuwait City, is a publicly listed investment holding company, and one of the largest publicly traded companies in Kuwait. Its business includes strategic and financial stakes in companies across Kuwait and the GCC, focusing primarily on building materials, specialist engineering, petrochemicals, finance, real estate, oil & gas services and energy sectors.
-Ends- London David G. Staples Managing Director Corporate Finance Group Moody's Investors Service Ltd. JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 DIFC Martin Kohlhase Asst Vice President - Analyst Corporate Finance Group Moody's Middle East Ltd. Telephone: +971-44-01-9536
Copyright 2009, Moody's Investors Service, Inc. and/or its licensors and affiliates including Moody's Assurance Company, Inc. (together, "MOODY'S"). All rights reserved.
© Press Release 2009 omar 1.1:zy
