Doha: Industries Qatar (“IQ” or “the Group”), one of the region’s industrial giants with holdings in petrochemicals, fertilizers and steel producers, announced yesterday that international credit rating agency, Standard & Poor’s Financial Services (S&P), has reaffirmed IQ’s credit ratings at ‘A+’ with a ‘stable’ outlook.
The reaffirmation of credit rating was based on S&P’s annual review of IQ’s current and future financial and operational performance, and financial position, where consideration was given to several factors including, IQ’s robust liquidity profile, strong competitive market position, prudent financial policy, product and end-market diversity, along with greater integration with the Parent entity (Qatar Petroleum). In a report published by S&P on June 7, 2021, the rating agency cited that “IQ’s prudent financial policy and strong cash flow support very strong credit metrics”.
S&P considered the business risk to be ‘satisfactory’ with ‘minimal’ financial risk. This underscores IQ’s superior profitability margins and robust operating cash flows benefiting from competitively priced feedstock, efficient assets, higher capacity utilization and synergies among Group companies.
