28/05/2009 00:00 AST

Standard and Poor's Ratings Services said today that it placed its 'BBB-' counterparty credit and insurer financial strength ratings on Kuwait-based Wethaq Takaful Insurance Co KSC (Closed) on CreditWatch with negative implications. "The CreditWatch placement follows the recent default by Wethaq's parent company, The Investment Dar, on one of its sukuk issues," said Standard & Poor's credit analyst Lotfi Elbarhdadi.

The Investment Dar (TID, not rated) holds a 67 percent stake in Wethaq. "Among the key features underlying our opinion on the financial strength of Wethaq, as a takaful (Islamic insurance) player in Kuwait, is the implicit benefit of being part of a large Sharia-compliant shareholder. We factored this benefit mainly into our opinion on Wethaq's financial flexibility and competitive position," said Elbarhdadi.

TID and its subsidiaries also act as asset and fund managers on behalf of Wethaq. However, TID's recent default on a Sharia-compliant instrument, and more generally the uncertainties regarding the outcome of TID's current debt restructuring program, put into question the parent's ability to offer potential financial or business support to Wethaq. We expect to resolve or update the CreditWatch within three months. In resolving the CreditWatch, we will focus on evaluating the impact we believe TID's default and debt restructuring may have on Wethaq's financial flexibility (defined as its level of access to capital relative to its needs), competitive position, and investments.

We are also currently undertaking the review of the impact of the current financial and economic environment on Wethaq's risk-based capital adequacy. If the outcome of the review is negative, based on available information, we could lower the ratings on Wethaq to the 'BB' category. Standard & Poor's is the leading provider of financial market intelligence to customers in the Gulf's credit risk management, wealth management, and data and information markets. Since entering the region in the early 1990s. Standard & Poor's has become the largest provide of credit ratings in the GCC, rating 114 issuers.

n equity markets, Shariah-complaint versions of Standard & Poor's global and regional equity market indices - S&P 500, S&P Europe 350, S&P Japan 500 and S&P/IFCI GCC - have created new opportunities for Islamic investors to benchmark their international investments and for asset managers to create new investment products serving the Islamic community, Standard & Poor's Fund Services launched a qualitative fund management rating service for regional asset managers in 2007.


Arab Times

Wethaq Takaful Egypt to launch 2 real estate funds

14/02/2015

Wethaq Takaful Insurance - Egypt is set to launch two real estate funds to pump investments up to 500 million Egyptian pounds ($65.5 million) within 2016, according to a report.

The funds

Trade Arabia

Banking accounts should be insured against internet piracy - Wethaq

07/02/2012

Wethaq Takaful Insurance Company advised, on Tuesday, to ensure personal and business banking accounts against data loss due to increasing attacks of internet piracy.

Manager of the Reinsura

KUNA

Kuwait-based Wethaq Takaful outlook revised to stable

16/12/2010

Standard and Poor's Ratings Services said today it has revised the outlook on takaful player Wethaq Takaful Insurance Co. (Wethaq) to stable from negative. At the same time, we have affirmed the 'BB'

AME Info

Ticker Price Volume
WETHAQ Sector Market
P/E
Price/BookValue
Relative Strength
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Price Vs…
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg
Ticker Price Change
BUPAARABIA 173.50 -4.60 (-2.59%)
TAWUNIYA 157.90 -0.10 (-0.07%)
ALRAJHITAKAFUL 125.80 -2.80 (-2.18%)
QATI 2.04 -0.09 (-4.23%)
RASAN 86.10 -0.80 (-0.93%)
Meeza in QR350mn pact with global hyper-scaler; to utilise its 4MW data centre capacity expansion

02/07/2025

Meeza, Qatar's leading Managed IT services and data centres provider, has signed a strategic long-term agreement valued at more than QR350mn with a global hyper-scaler, marking a major milestone in i

Gulf Times

UDC wins 4 international awards

02/07/2025

United Development Company (UDC), the master developer of The Pearl Island and Gewan Island, has been honoured with four out of six prestigious international accolades in environment and sustainabili

Gulf Times

Jadwa leads $50m investment round in PetroApp

02/07/2025

Jadwa Investment has led a $50 million investment round in PetroApp, Saudi Arabia's leading fuel management platform.

Founded in 2018, PetroApp is Saudi Arabia's first independent provider

Trade Arabia

Aldar acquires key Abu Dhabi logistics assets from Waha Capital

02/07/2025

Leading UAE developer Aldar has annoucned that it has acquired quality warehousing and light industrial real estate assets in the Al Dhafra region of Abu Dhabi from Waha for AED530 million ($144 mill

Trade Arabia

National Investments Company launches its second Sustainability Report for 2024

02/07/2025

National Investments Company (NIC) has released its second annual Sustainability Report for 2024, reinforcing its institutional commitment to embedding sustainability principles and enhancing governa

Kuwait Times