GCC companies will find it a challenge to refinance a total of $35 billion (Dh128.5bn) to $40bn worth of maturing debt instruments this year, new research has shown. Of this, approximately $20bn are associated with the UAE and $15bn are in Dubai.
"Addressing these maturities will be a significant challenge, although we do expect liquidity to return to the markets as 2009 progresses, and bond spreads to recede from some of the panic-stricken levels seen in the second half of 2008," Moody's Investors Service said in a corporate finance outlook.
As markets re-open, issuers with sound credit fundamentals and government backing should be able to close financing transactions, "but these come at a price", Moody's said.
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