This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Arabian Centres was downgraded by a notch to Ba3 from Ba2 by Moody’s. The rating agency also downgraded the ratings of sukuk issued by Arabian Centres Sukuk Limited and Arabian Centres Sukuk II Limited to Ba3. The downgrade reflects the weakening credit fundamentals of the company and aggressive liquidity and financial policies track record of the company. For instance, as of 30 September 2023, Arabian Centres’ leverage increased to 8.7x net debt/EBITDA from 8.1x as of 31 March 2022. Moody’s expects the pace of improvement in credit metrics for the entity will be constrained due to further increase in net debt and interest expenses as it continues to invest in large debt-financed projects, and pay sizable dividends.
Its dollar bonds traded stable with its 5.625% 2026s at 92.7 cents on the dollar, yielding 8.8%