Kuwait Projects Company Sukuk Limited

Rating action by Fitch Ratings (Fitch)

Kuwait Projects Company (Holding) K.S.C.P. (KIPCO), the Obligor of Kuwait Projects Company Sukuk Limited, announced that Fitch Ratings has downgraded its Long-Term Issuer Default Rating (IDR) to 'BB-' from 'BB'; the Outlook is Stable.

As per the Fitch's announcement, the downgrade reflects the company's high leverage with Net LTV (loan-to-value) at 41.4% expected at end-2024. Further, in Fitch's opinion, KIPCO's weighted average portfolio credit strength by equity value is relatively weak at 'b+' driven by Fitch's assessment of credit quality of its subsidiaries and weak recent profitability within its banking and financial sector.

The report also says that KIPCO's rating is supported by a combination of transformed portfolio with increased diversification across several industries and presence in Middle East & North Africa (MENA) region, established track record of long-term returns, significant influence over the majority of companies in the portfolio, and stable dividend flow from the portfolio companies through-the-cycle. The report also recognized the Company's success in refinancing its debt maturities and monetizing its investments.

For further information, please contact:

Investors, Press and Media:

Eman Al-Awadhi

49^th Floor

KIPCO Tower, Khaled Bin Al-Waleed St, Sharq

P.O. Box 23982

Safat 13100

Kuwait

Tel: +965 2294 3416

Email: [email protected]