Industries Qatar (IQ), one of the region’s industrial giants with holdings in petrochemicals, fertilizers and steel producers, yesterday announced that international credit rating agencies Standard & Poor’s Financial Services (S&P) and Moody’s Investors Service have both recently affirmed IQ’s credit ratings. S&P affirmed IQ’s credit rating at ‘A+’ with a stable outlook. Moody’s affirmed IQ’s long term rating at A1 with a stable outlook.
The affirmation of the credit rating by both rating agencies was based on their annual review of IQ’s current and future financial and operational performance. Consideration was given to several factors in assigning and maintaining their current ratings and outlook, including, IQ’s liquidity profile; robust cash flow generation ability; strong competitive market position; and greater integration with the Parent entity (Qatar Petroleum).
S&P explained in an open statement that “IQ’s prudent financial policy and strong cash flow generation support very strong credit metrics”.
Moody’s stated that “IQ entered the low oil prices period with low leverage and capital spending requirements, allowing for more financial flexibility”.
These affirmations are a testament to IQ’s enhanced asset quality foundation and robust liquidity position based on sound operating and financial management policies. Where IQ’s competitive strengths will provide a leverage in the current challenging times, with an ability to generate positive cash flows in such distressed market conditions, and an efficient cost structures and robust working capital management, would safeguard the Group against any unexpected adversities.
