GCC infrastructure firms may face refinancing risk: S&P -

Several corporates and infrastructure companies in the Gulf region may face a greater refinancing risk because they have delayed issuances to capital markets, Standard & Poor''s Ratings Services has said.

In its latest industry report card, titled, ''Swinging Bond Spreads Heighten Refinancing Risk For The GCC Corporate And Infrastructure Segment'', it said that conditions for issuing bonds in Gulf Cooperation Council countries -- comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE -- took a turn for the worse in August, 2011, but have recovered some ground in October.
"Bond prices were highly volatile in recent months, with lower rated issues trading sharply down and yields spiking in the secondary market. We believe investors'' increased risk aversion and concerns about the negative implications of slowing global economic growth are behind the swings," said Standard & Poor''s credit analyst Tommy Trask.

Some companies are turning back to banks for their refinancing needs."

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