International rating agencies have given Bahraini-based investment group Investcorp stable outlooks. These ratings, said the agencies, reflect Investcorp's ability in placing investments, solid balance sheet supported by a strong capital base, moderate leverage and high liquidity, reported a company release.
Moody's Investors Service confirmed Investcorp's Baa2 rating, Fitch Ratings confirmed a BBB rating and Capital Intelligence confirmed a BBB+ rating, all three with a stable outlook qualifier.
In its report, Moody's said: “The ratings are a reflection of an institution with a strong and improving franchise in the Gulf, high quality management, a track record of good profitability, high liquidity and strong ability to manage risk.”
In its report, Fitch said: “Investcorp's Rating Outlook has been changed to Stable ….reflecting its generally favorable track record as one of the leading private equity investors operating in the US and Europe, demonstrated skills in placing investments with Arabian Gulf investors, moderate leverage targets, and access to liquidity. ……. Its assets under management in hedge funds have improved fee-based revenues which assists in counterbalancing expected volatility in the private equity business.”
In its report, Capital Intelligence said: “Investcorp maintains a very solid capital base and good liquidity profile. Recurring income streams, particularly from asset management, continue to perform well to date. These factors will support the Bank during this challenging period.”
Investcorp continues to diversify and lengthen the maturities of its liabilities, recently agreeing to another 30-year private placement for $50 million. With the existing 30-year $325 million facilities signed with a Japanese institution, this brings Investcorp's total very long-term funding to approximately $375 million. As a result of these and other long-term financing initiatives, the average maturity of Investcorp's liabilities now exceeds 73 months and provides additional strength to Investcorp's balance sheet.
Investcorp is an investment group with offices in Bahrain, London and New York. The firm has four lines of business: corporate investment, real estate investment, asset management and technology investment. It was established in 1982 and has since completed transactions with an aggregate value of approximately $20 billion. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
