Market heavyweight Industries Qatar (IQ) yesterday said global credit rating agency Standard & Poor's (S&P) has upgraded its credit rating to ‘AA-’ from 'A+' with a stable outlook.
IQ, which is the holding entity for Qatar Petrochemicals, Qatar Fertilisers and Qatar Steel, said Moody’s Investors has also affirmed its credit ratings and upgraded the outlook to positive from stable.
These strong credit ratings were issued by the respective international credit rating agencies based on their review of IQ's current and future financial and operational performance.
Consideration was given to several factors in assigning these current ratings, including IQ's healthy liquidity profile; robust cash flow generation capability; strong competitive market position; and greater integration with the parent entity (QatarEnergy).
"We expect that IQ will retain its superior profitability and cost competitiveness, owing to efficient operations,” S&P said.
Moody's said the baseline credit assessment 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 a testament to IQ's enhanced asset quality and robust liquidity position based on sound operating and financial management processes and policies," IQ said.
Where IQ’s competitive strengths will leverage stability during the present unpredictable times and empower ability to generate positive cash flows, given the group’s efficient cost structures and robust working capital management capabilities, the rating agency said.
These strong credit ratings were issued by the respective international credit rating agencies based on their review of IQ's current and future financial and operational performance.
Consideration was given to several factors in assigning these current ratings, including IQ's healthy liquidity profile; robust cash flow generation capability; strong competitive market position; and greater integration with the parent entity (QatarEnergy).
"We expect that IQ will retain its superior profitability and cost competitiveness, owing to efficient operations,” S&P said.
Moody's said the baseline credit assessment 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 a testament to IQ's enhanced asset quality and robust liquidity position based on sound operating and financial management processes and policies," IQ said.
Where IQ’s competitive strengths will leverage stability during the present unpredictable times and empower ability to generate positive cash flows, given the group’s efficient cost structures and robust working capital management capabilities, the rating agency said.