DUBAI: In response to the Standard & Poor’s (S&P) announcement regarding Investcorp’s debt rating, Investcorp announced yesterday that given the unprecedented turmoil and continued instability in financial markets globally, coupled with steep declines in oil prices and downward adjustments to forecasts for economic growth in the Gulf region, credit rating agencies have been on a spree of issuing downgrades and negative outlooks for GCC-based companies. “Indeed, countries in the region have been downgraded or put on negative watch by the ratings agencies. It is therefore not surprising that S&P has translated its macro views regarding the region and the alternative investments sector as a whole to Investcorp as well,” the announcement said.
“While disappointing and in our view unjustified, S&P’s move does not in itself affect the operations of Investcorp’s business nor its ability to access capital from its clients and shareholders for its investment products or its balance sheet. We are pleased to note that S&P is confident that we have adequate current liquidity and that it commented positively on our continuing actions to deleverage our business.