Fitch Affirms Rtgs Of Investcorp S.A.; Rtg Outlook To Stable

Business Wire, April 29, 2002

Business Editors

CHICAGO--(BUSINESS WIRE)--April 29, 2002

Fitch Ratings has affirmed Investcorp S.A.'s (ISA) long- and short-term ratings at 'BBB' and 'F2', respectively. At the same time, its Rating Outlook has been changed to Stable from Negative. Additionally, Fitch has affirmed individual and support ratings of 'B/C' and '5', respectively to Investcorp SA. These ratings apply to Investcorp SA, Investcorp Bank EC, Investcorp Capital Limited (ICL) and Investcorp Holdings LTD as Investcorp SA guarantees the bonds and private placement issued by Investcorp Capital Limited.

ISA's ratings reflect its generally favorable track record as one of the leading private equity investors operating in the U.S. and Europe, demonstrated skills in placing investments with Arabian Gulf investors, moderate leverage targets, and access to liquidity. ISA manages and sells investments in private equity, real estate and hedge funds. Its assets under management in hedge funds has improved fee-based revenues which assists in counterbalancing expected volatility in the private equity business.

While earnings have been below historic norms the last two years, ISA has demonstrated sufficient stability in very poor private equity markets. The issuance of $200 million in preference shares has also boosted capital offsetting the increased volatility in equity as it adopted IAS 39.