As global crunch squeezes Gulf, debt defaults, ratings outlook downgrades mount

CAIRO, Egypt (AP)


The announcement by Kuwait’s Global Investment House marked a sharp blow for the firm, which had been meeting with creditors about restructuring what its managing director said in December was $3 billion in loans.

That push came after Global defaulted on a $200 million dollar maturing loan that month, prompting Fitch Ratings and Standard & Poor’s to downgrades its ratings. In its latest statement, the company said that as a result of the earlier default, and because of cross default provisions, it was “in default on the majority of its financial indebtedness.”

AP