Industries Qatar Gets Credit Rating Upgrade From S&P, With Moody's Upgrades Outlook To Positive
Date
11/13/2022 2:10:06 PM
(MENAFN- Gulf Times) Standard & Poor's financial Services (S&P) upgraded the credit rating of Industries Qatar (IQ) to 'AA-' from 'A+' with a stable outlook, while Moody's Investors Service (Moody's) affirmed the company's credit ratings but upgraded the outlook to 'Positive' from 'Stable'.
These strong credit ratings were issued by the respective international credit rating agencies based on their review of IQ's current and future financial and operational performance.
Consideration was given to several factors in assigning these current ratings, including IQ's healthy liquidity profile; robust cash flow generation capability; strong competitive market position; and greater integration with the Parent entity (QatarEnergy).
S&P explained in an open statement: 'We expect that IQ will retain its superior profitability and cost competitiveness, owing to efficient operations'.
On the other hand, Moody's stated: 'The Baseline Credit Assessment (BCA) is underpinned by IQ's strong competitive position as a low-cost producer; a very strong financial profile, and a high degree of integration and coordination between IQ and QatarEnergy'.
This is a testament to IQ's enhanced asset quality and robust liquidity position based on sound operating and financial management processes and policies. Where IQ's competitive strengths will leverage stability during the present unpredictable times and empower ability to generate positive cash flows, given the Groups efficient cost structures and robust working capital management capabilities.
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