Mubasher: Capital Intelligence (CI) Ratings has affirmed the rating of United Real Estate Company's (URC) KWD 60 million ($197.7 million) bond, which will mature in April 2023, at 'BBB', with a stable outlook.

This a reflection of the company’s stability and an increased investors’ confidence and a strong financial position, according to a statement by URC to Boursa Kuwait on Sunday.

The rating was attributed to a large high-yield property portfolio with a satisfying rent growth potential, a diversified financing base, as well as the company’s reputation and the support of the Kuwait Projects Holding Company (KIPCO).

It is worth noting that in its recent report, CI explained that while the outlook is maintained at stable, high and rising leverage is exerting strong downward pressure and action would be required should the leverage ratio fall out of the range for the current rating.