13-11-2022
Industries Qatar ("IQ" or the "Company", Qatar Stock Exchange: IQCD) announced that Standard & Poor's has upgraded the company's credit rating from (A+) to (AA-) with a stable outlook. While Moody's affirmed the company's credit rating and raised the outlook from "stable" to "positive".
It should be noted that these strong credit ratings granted by the two international credit rating agencies were based on a review of the company's current and future financial and operational performance. The two agencies considered several factors when issuing these credit ratings, including the company's outstanding levels of liquidity, its strong ability to generate cash flows, and its distinguished competitive position in the markets, in addition to its strong integration with the parent entity (Qatar Energy).
Standard & Poor's said in a statement: "Our expectations are that Industries Qatar will continue to generate significant levels of profit and remain cost-competitive thanks to the efficiency of its operations."
For its part, Moody's indicated that "the basic credit rating was based on the competitive position of Industries Qatar as a low-cost producer, its very strong financial position, and the significant degree of integration and coordination between it and Qatar Energy."
These ratings are a testament to the efficiency of the assets owned by Industries Qatar and the strength of its position in terms of liquidity, thanks to its rational administrative procedures and policies at the operational and financial levels, noting that the company’s competitive strengths contribute to enhancing its stability during the current unpredictable time and support at the same time, its ability to generate positive cash flows in light of the efficient cost structures of the group and its strong ability to manage working capital.