Moody's assigns Baa2 rating to EQUATE's GMTN programme

Moody's assigned a 'Negative' outlook to EQUATE's new GMTN programme


Kuwait - Moody's Investors Service has assigned a (P) Baa2 rating to EQUATE Petrochemical Company’s new GMTN programme that is established under MEGlobal Canada ULC, with a ‘Negative’ outlook.

The rating and outlook mirror the previously announced rating and outlook of EQUATE’s long-term issuer, according to a press release on Monday.

This is because the bonds issued under this programme will be “unconditionally and irrevocably guaranteed on a joint and several basis by EQUATE and The Kuwait Olefins Company,” Moody’s said.

It is noteworthy that EQUATE has established the new programme with the aim to undertake a liability management exercise. Proceeds resulting from the planned issuance will be used to repay the $1.9 billion term loan due in 2023.

In addition, the transaction will be leverage neutral and will extend the company's debt maturity profile.

On 3 March 2020, Moody's affirmed EQUATE's Baa2 issuer rating and revised the outlook to negative from stable.

Source: Mubasher

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