Qatar Industries Gets S&P Credit Rating Upgrade as Moody’s Outlook Changes to Positive
13 November 2022 11:08
Standard & Poor’s Financial Services (S&P) upgraded Industries Qatar’s (IQ) credit rating from “A+” to “AA-” with a stable outlook, while Moody’s Investors Service (Moody’s) confirmed the credit rating of the company but raised the outlook to “Positive” from “Stable”.
These strong credit ratings have been issued by the respective international rating agencies based on their review of IQ’s current and future financial and operational performance.
Several factors were considered in assigning these current ratings, including IQ’s healthy liquidity profile; strong cash flow generation capability; strong competitive position in the market; and greater integration with the parent entity (QatarEnergy).
S&P explained in an open statement, “We expect IQ to maintain its superior profitability and cost competitiveness, driven by efficient operations.”
On the other hand, Moody’s said: “The Basic 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 testament to IQ’s improved asset quality and strong liquidity position based on strong operational and financial management processes and policies. Where IQ’s competitive strengths will leverage stability during the current unpredictable times and enable positive cash flow generation given the group’s efficient cost structures and strong working capital management capabilities.
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